• Management & Information Systems Review
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• v.37 no.3
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• pp.65-81
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• 2018

This study estimated the long-run and the short-run price and income elasticity of crude oil demand by using the ARDL model in Korea. First, the long-run cointegration relationship existed between crude oil demand and price or income in the ARDL-bounds tests. Second, the long-run own price, the cross price elasticity and the income elasticity were both statistically significant elastic and sensitive in the ARDL. Third, there was autocorrelation of the residuals, but no misspecification errors and heteroscedasticity, and then the residuals showed a normal distribution. And the CUSUM & CUSUMSQ tests showed that the coefficients were stable. Fourth, the short-run own price, the cross price elasticity and the income elasticity were both statistically significant elastic and sensitive in the ARDL-RECM. The ECM with the short-run dynamics showed rapid adjustments in the long-run equilibrium of oil demand after the economic crisis. In the short-run, the sensitivity of crude oil demand to price and income changes has moved in the same direction as the long-run case. Korea, depending too much on foreign crude oil, is vulnerable to the shocks of oil prices, so rising oil prices can certainly have a negative impact on Korea's trade balance. And the elasticity of long-run oil prices may help to control and manage Korea's oil demand. The government needs to strengthen monitoring of the country's policies and market trends related to crude oil, establish strategies to customize national policies and market conditions, and strengthen active market dominance efforts through pioneering new market and diversification.

• Korea journal of population studies
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• v.25 no.2
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• pp.271-291
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• 2002

According to a system-wide analysis utilizing the raw data of Korean urban households survey, the expenditure elasticity estimate of alcoholic demand is around 0.71, which implies the demand for alcoholic consumption is relatively necessary The own price elasticity estimates are pretty elastic between -1.79 and 2.10. The trend of price elasticity estimates shows to be more elastic recently from the past.

• Journal of Korean Society of Transportation
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• v.23 no.8 s.86
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• pp.67-75
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• 2005

This study analyzed the relationships between expenditures on transportation and those on communications, using consumer expenditure data from the U.S. for the 19 years 1984-2002. We first identified 12 categories of goods for transportation and communications, and then applied the linear approximate Almost Ideal Demand System(LA/AIDS) method for estimating consumer demand functions based on aggregating the categories to five (public transportation, personal vehicle capital, personal vehicle operation, electronic communications media, and print communications media) due to the small sample size. Expenditure and price elasticities were also calculated at mean values of expenditure shares. The results indicate that transportation and communications categories have both substitutive(e.g. public transportation and electronic communications media) and complementary(e.g. private vehicle capital and electronic communications media) relationships. Additionally, expenditures in the transportation categories are generally more income-elastic than those in communications.