• Journal of the Korean Regional Science Association
• /
• v.12 no.2
• /
• pp.59-68
• /
• 1996

Common belief in border regions holds that Mexican cross-border shoppers play a larger role in the regional economic base than they do and that NAFTA will provide a bigger stimulus to the regional economy than it is likely. In the regional economy than it is likely. In the first case, price elasticities are implicitly underestimated as highly inelastic and in the latter case, overestimated as highly elastic. This paper provides empirical evidence on the effects of distance and real exchange rates as price proxies on both field survey and population-imputed estimates of cross-border shopping. After estimating both distance-based and real exchange rate-based estimates of price elasticities of Mexican shopper demand for U.S. border-region goods, implications are obtained concerning the relative importance for U.S. border-regon economies of more distant Mexican markets, and the likely impacts of NAFTA.

• Journal of the Korean Society of Clothing and Textiles
• /
• v.36 no.12
• /
• pp.1285-1296
• /
• 2012

This study investigates the effects of changes in price, total consumption expenditures and economic sitations on Korean household demands for clothing and footwear using time-series data. The clothing and footwear category was reclassified as clothing, footwear and clothing services items for the demand analysis. This study utilized the Linearized Almost Ideal Demand System (LAIDS) model to analyze household demand. The results indicate that price and total consumption expenditures are significantly related to Korean household consumption expenditure allocations for clothing and footwear items. The effects of the IMF bailout crisis in 1997 and the global financial crisis in 2008 on household expenditure shares for clothing and footwear items were very weak and statistically insignificant. All the demand elasticities were estimated with respect to total consumption expenditures and prices. Clothing was expenditure elastic (greater than one) and other items were classified as inelastic. All the own price elasticities of demands were negative (other than clothing). Through the estimations of cross price elasticity the relationships between the demands for items and other item prices were evaluated (i.e., substitutes and complements).

• Korea journal of population studies
• /
• v.25 no.2
• /
• pp.271-291
• /
• 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 the Korea Academia-Industrial cooperation Society
• /
• v.16 no.9
• /
• pp.5843-5849
• /
• 2015

This study analyzes the factor demand structure of sweet persimmon as a part of finding out cost cutting measures. Income and cost data from 2001~2013 Agricultural Income Survey are used for placing the translog cost function and estimating price elasticies and cross elasticities of labor, capital and intermediate input. The result shows that own price elasticities of all factors are small in absolute terms. Additionally the result indicates capital and intermediate input cannot be a substitution for labor, which is a top-line cost-share. It means that the demand for labor cconstitutionally can't be reduced in a short time. This implies that cost reduction should be done focusing on intermediate input, particularly on fertilizer and materials which have higher price elasticity of demand.

• Management & Information Systems Review
• /
• v.36 no.4
• /
• pp.81-102
• /
• 2017

This study examined the income and price elasticities of tourism demand model by using the ARDL models. This paper used the ARDL & ARDL-RECM model based on the annual number of tourists arrivals, GDP and CPI including tourists from the US, Japan and China entering Korea. First, the income elasticity of the US was inelastic and insensitive necessities for long-run US tourists in the ARDL model. China's income elasticity was elastically sensitive luxuries. Second, the US and China's own price elasticities were very elastic to tourism demand in both models. Third, the US's cross price elasticity showed the relationship between inelastic positive substitutes and inelastic negative complements in China in ARDL model. The cross price elasticities of the US and China showed inelastic positive substitutes in the ARDL-RECM model. Fourth, the coefficients of the error correction term were such that the actual sign and the expected sign of the US and China coincided with the negative sign in the ARDL-RECM model. Therefore, first, it can be established in a tourist policy or tourism strategy through income elasticity. Second, we can improve the quality and differentiation of products, recognizing that Korea's tourism price is more elastic than other markets through price elasticity.

• Korea journal of population studies
• /
• v.25 no.1
• /
• pp.257-289
• /
• 2002

In this study we analyse how the tobacco prices have an effect on the national health. The level of tobacco price will fluctuate its consumers demand and eventually affect the national health status. We estimate tobacco consumption function as well as households'demand system in which tobacco and health expenditure functions are included. Demand elasticities are estimated and evaluated in order to find future policies to improve the national health by controlling the national tobacco consumption There are two econometric approaches app1ied in this study. The lent tobacco demand analysis method is mm tobacco consumption function model. Using national indices of tobacco price, tobacco consumption and other related variables, tobacco consumption function is estimated. The other is micro demand system analysis by using Korean urban households expenditure data during the period of 1991 to 1999. The own price elasticity which is estimated from national tobacco demand per capita is -0.19 for all people and -0.176 for the adults over 18, which means 100% price increase will cause decease of tobacco demand at 19% and 17.6% per each The cross vice elasticity which is estimated between tobacco and health expenditure of urban households demand system is -0.2328, which implies 100% of tobacco price increase will decrease 23.28% of health expenditure. The low price elasticities imply that tobacco price increase will increase total tobacco sales volume. 100% of tobacco price increase will bring about 79% increase of total tobacco sales volume according to our scenario. Korea's tobacco demand is negatively responsive to fluctuations in its price. The health expenditure is also negatively relatedto the tobacco price fluctuation. These empirical outputs could be utilized as the basis of government's tax policy to control national tobacco consumption in the future.

• Journal of Energy Engineering
• /
• v.22 no.1
• /
• pp.1-7
• /
• 2013

This paper attempts to estimate the residential electricity demand function, using survey data of 521 households in Korea. As the residential electricity demand function provides us information on the pattern of consumer's electricity consumption, it can be usefully utilized in predicting the impact of policy variables such as electricity price and forecasting electricity demands. We apply least absolute deviation(LAD) estimation as a robust approach to estimating parameters. The results showed that price and income elasticities are -0.68 and 0.14 respectively, and statistically significant at the 10% levels. The price and income elasticities portray that residential electricity is price- and income-inelastic. This implies that the residential electricity is indispensable goods to human-being's life, thus the residential electricity demand would not be promptly adjusted to responding to price and/or income change.

• Environmental and Resource Economics Review
• /
• v.22 no.2
• /
• pp.251-279
• /
• 2013

Prices of oil products such as gasoline and diesel are deregulated since 1997 while electricity price is still controlled by government. This difference may explain recent discrepancy in the patterns of demand for oil products and electricity - constant increase in electricity consumption and stagnant demand for oil. To verify it empirically, we estimate price and income (production) elasticity of demand across time by using a rolling regression with 10 year-window based on monthly data for 1981-2011. Estimation results show that the sensitivity to price in demand for gasoline and diesel has increased since mid-90s while the elasticity of demand for electricity has become smaller. Second, income (production) elasticities of demand have shown no significant changes for both oil products and electricity. Third, cross-price elasticity was found meaningful only for gasoline before mid 1990s and for diesel after then.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.8 no.2
• /
• pp.45-56
• /
• 1983

This paper presents a generalized fuel choice model in which restrictive constraints on cross-price coefficients as Baughman-Joskow-FEA Logit Model need not be imposed, but all demand elasticities are uniquely determined. The model is applied to estimating aggregate energy demand and fuel choices for the residential and commercial sector. The structural equations are estimated by a generalized least squares procedure using national-level EPB, KDI, BK, KRIS, MOER data for 1965 and 1980, and other related reports. The econometric results support the argument that “third-price” and “fourth-price” coefficients should not be constrained in estimating relative market share models. Furthermore, by using this fuel choice model, it has forecasted energy demands by fuel sources in, the residential and commercial sector until 1991. The results are turned out good estimates to compare with existing demands forecasted from other institutes.

• Human Ecology Research
• /
• v.53 no.3
• /
• pp.309-318
• /
• 2015

This study investigates to investigate the ageing effect on household demand for clothing, food, housing and medical care commodities in Korea using a demand system model. The cross-sectional and time-series data from Statistics Korea on urban household expenditures and age projection analyzed household demands of consumption commodities. The household head age and elderly population ratio were employed for proxy variables of ageing. Ageing variable elasticities of commodity demands were estimated. Study results show that ageing variables significantly influenced on a household demand for commodities; clothing and food consumption decreases; however, housing and medical care consumption increases with ageing. The elasticities of total consumption expenditures and price variables were estimated in the demand analysis; these two variables significantly impacted almost all of the household consumption for the studied commodities. This study provides an opportunity to examine how ageing influences household consumption for clothing, food, housing and medical care commodities as Korean society experiences a rapid ageing. It is also meaningful that this study conducted a quantitative measuring of the household demands for commodities that was different from past research on the household consumption expenditures for commodities.