• Title/Summary/Keyword: Income elasticity

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Estimation of city gas demand function using time series data (시계열 자료를 이용한 도시가스의 수요함수 추정)

  • Lee, Seung-Jae;Euh, Seung-Seob;Yoo, Seung-Hoon
    • Journal of Energy Engineering
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    • v.22 no.4
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    • pp.370-375
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    • 2013
  • This paper attempts to estimate the city gas demand function in Korea over the period 1981-2012. As the city gas demand function provides us information on the pattern of consumer's city gas consumption, it can be usefully utilized in predicting the impact of policy variables such as city gas price and forecasting the demand for city gas. We apply lagged dependent variable model and ordinary least square method as a robust approach to estimating the parameters of the city gas demand function. The results show that short-run price and income elasticities of the city gas demand are estimated to be -0.522 and 0.874, respectively. They are statistically significant at the 1% level. The short-run price and income elasticities portray that demand for city gas is price- and income-inelastic. This implies that the city gas is indispensable goods to human-being's life, thus the city gas demand would not be promptly adjusted to responding to price and/or income change. However, long-run price and income elasticities reveal that the demand for city gas is price- and income-elastic in the long-run.

Estimation of the electricity demand function using a lagged dependent variable model (내생시차변수모형을 이용한 전력수요함수 추정)

  • Ahn, So-Yeon;Jin, Se-Jun;Yoo, Seung-Hoon
    • Journal of Energy Engineering
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    • v.25 no.2
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    • pp.37-44
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    • 2016
  • The demand for electricity has a considerable impact on various energy sectors since electricity is generated from various energy sources. This paper attempts to estimate the electricity demand function and obtain some quantitative information on price and income elasticities of the demand. To this end, we apply a lagged dependent variable model to derive long-run as well as short-run elasticities using the time-series data over the period 1991-2014. Our dependent variable is annual electricity demand. The independent variables include constant term, real price of electricity, and real gross domestic product. The results show that the short-run price and income elasticities of the electricity demand are estimated to be -0.142 and 0.866, respectively. They are statistically significant at the 5% level. That is, the electricity demand is in-elastic with respect to price and income changes in the short-run. The long-run price and income elasticities of the electricity demand are calculated to be -0.210 and 1.287, respectively, which are also statistically meaningful at the 5% level. The electricity demand is still in-elastic with regard to price change in the long-run. However, the electricity demand is elastic regarding income change in the long-run. Therefore, this indicates that the effect of demand-side management policy through price-control is restrictive in both the short- and long-run. The growth in electricity demand following income growth is expected to be more remarkable in the long-run than in the short-run.

Estimation of kerosene demand function using time series data (시계열 자료를 이용한 등유수요함수 추정)

  • Jeong, Dong-Won;Hwang, Byoung-Soh;Yoo, Seung-Hoon
    • Journal of Energy Engineering
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    • v.22 no.3
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    • pp.245-249
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    • 2013
  • This paper attempts to estimate the kerosene demand function in Korea over the period 1981-2012. As the kerosene demand function provides us information on the pattern of consumer's kerosene consumption, it can be usefully utilized in predicting the impact of policy variables such as kerosene price and forecasting the demand for kerosene. We apply least absolute deviations and least median squares estimation methods as a robust approach to estimating the parameters of the kerosene demand function. The results show that short-run price and income elasticities of the kerosene demand are estimated to be -0.468 and 0.409, respectively. They are statisitically significant at the 1% level. The short-run price and income elasticities portray that demand for kerosene is price- and income-inelastic. This implies that the kerosene is indispensable goods to human-being's life, thus the kerosene demand would not be promptly adjusted to responding to price and/or income change. However, long-run price and income elasticities reveal that the demand for kerosene is price- and income-elastic in the long-run.

A Study on Marketing of Cultured Laver Products (양식해태의 유통에 관한 조사 연구)

  • 유충열
    • The Journal of Fisheries Business Administration
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    • v.4 no.1_2
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    • pp.19-57
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    • 1973
  • Laver io one of the most necessary and seasonal items in Korean food from oldtimes. Laver is lagely eaten in dried form, and its supply depends entirely upon culture weeds. The history of laver culture in Korea about sixty or seventy years is older than in Japan. Significance of laver culture is divided into two aspects, one is food supply in the nation, and the other is export to other countries. Houses engaged in laver culture are about foully thousands, and laver production in 1972 is estimated as 1, 3 bitten sheets. (1 sheet is a dried laver of 20 cm sq, in the shape of paper) Especcially meaning of layer production is the concentration of labour input, and systematic management of labour. From around 1920, the method of laver culture was introduced by Japanese Imperialism for mono culture in shallow seas, and mass products of laver is provided to Japan market, DOMESTIC MARKET Fundamental consume function calculates at below, $D_{(68_71)}$=16354 $Y^{0.471}$ $P^{-1.0662}$ where D is total layer demand, Y income variable, P price variable. It means income elasticity is 476. in the whole country, and price elasticity is 1, 07. But generally income elasticity is higher in urban area than in rural area, as shown at 1, 3 in Seoul city. Expence of laver in house expenditure is mutually correlated with another expence, See Table 12 about the relative function. See Table 14 and 16 about the relation between the gathering and the changes of price in auction, wholesale and retail price support system is for two effects, one of which is constraint of the upper price, the other is rise of the lower price. Before the system control, the equation in three year average calculated as below, $Y_{b}$ =18, 907.7455+15435.9364 t (r=0.89) where the origin t=0 is the November and the units are month. Post the system control, $Y_{p}$ =30, 047.9636+1, 631.1721t (r=0.97) therefore, this system has an effect only on the rise of lower price, Average annual margins of laver products at four market levels according to the consumer spent is below. EXPORTING MARKET Japanese demand function of laver products is, Log D=5, 289+1, 108 Log Y-1, 395 Log P (r=0.987) where D is Japanese laver demand, Y income variable, P price variable. according to which income elasticity is 1. 1 and price elasticity is 1.4. Laver production in 1970 tile highest record till then, is estimated as six billion sheets. But the recent improvement of laver culture techniques, the production of seeds and freezing storage of seeds has been stabilized. Futher new culture farms have been developed by means of break- water fences or by floating culture method. These improvements have been backed up with increased demand of laver products. Import quantity and price of Korean laver products are restrained by three organizations, that is producer, distributor and consumer. This relationship calculated by regression equation shows that import is influenced only producer organization, at the sacrifice of consumer profit. For increase to export of laver products, we urgently require to open foreign trade of laver products for Japanese consumer, .and Japan has political responsibility to solve Korean laver structure. But with long run timeseries, as regards Japanese production and import quantity, importing function shows increasing trend as below, 250 million sheets <3, 947.1674+0.005 $L_{g}$ >) 600 million sheets where $L_{q}$ is relative production quantity of laver in Japan. (unit; 100 thousand sheets) Our Export effort should be put on the highly processed products whithin the restraind quote.ote.

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Feasibility of Enhancing Fishing Household Income Through Leports-fishing Development (레포츠피싱을 통한 어가소득 증대에 관한 연구)

  • Park, Seong-Kwae
    • Proceedings of the Fisheries Business Administration Society of Korea Conference
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    • 2007.06a
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    • pp.133-158
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    • 2007
  • This study aims at analyzing the potential of leports-fishing for improving fishing household income. Leports-fishing is a composite concept which is combined with those of leisure, sports and fishing. Korean on-shore resources have also a composite characteristic. The characteristics of the east, west and south coastal waters are quite different in geography, biology and ecology. There is a array of leports-fishing development potentials of utilizing their characteristics. At present, angling forms a main activity of leports-fishing, but coastal seas would be an emerging space for the public. In order for them to be a ground of fun, enjoyment and festivals, there would be necessary to supply a wide range of activities including angling, scuba diving, fish barbecue, ecological experience, fishing experience, cruise, and so forth. As seen in the survey results, the participants have strong desire for fun and enjoyment through leports-fishing activities. The proportion of people participating in one or two times a year amounts to 40 percent. Most coastal places visited are close to medium/large cities and two-days leports-fishing/ tourism accounts for some 77 percent. However, it is shown that conflicts between leports-fishing participants and fishermen are not serious. The results of expenditure function estimation appear that the elasticity of per capita income is very high with 1.2660 and that there are negative relationships between leports-fishing expenditure and transportation/food/lodging costs. Assuming the economic growth rate of 4 percent, it is anticipated that Korean leports-fishing population will increase to 3.18 million in 2010 and 4.07 million in 2015. Korean leports-fishing market potential in 2015, which is calculated based on per capita expenditure on leports-fishing appeared to be 1,400 billion won$\sim$1,600 billion won. The contribution of such market potential is expected to be 62.3$\sim$74.2 percent(934.5 billion won$\sim$111.3 billion won) to the fishing households.

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Feasibility of Enhancing Fishing Household Income Through Leports-fishing Development (레포츠피싱을 통한 어가소득 증대에 관한 연구)

  • Park, Seong Kwae;Kim, Soo Jin;Kim, Young Ja
    • Journal of Fisheries and Marine Sciences Education
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    • v.19 no.2
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    • pp.180-196
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    • 2007
  • This study aims at analyzing the potential of leports-fishing for improving fishing household income. Leports-fishing is a composite concept which is combined with those of leisure, sports and fishing. Korean on-shore resources have also a composite characteristic. The properties of the east, west and south coastal waters are quite different in geography, biology and ecology. There is a array of leports-fishing development potentials of utilizing their characteristics. At present, angling forms a main activity of leports-fishing, but coastal seas would be an emerging space for the public. In order for them to be a ground of fun, enjoyment and festivals, it would be necessary to supply a wide range of activities and facilities including angling, scuba diving, fish barbecue, ecological experience, fishing experience, cruise, and so forth. As seen in the survey results, the participants have strong desire for fun and enjoyment through leports-fishing activities. The proportion of people participating in one or two times a year amounts to 40 percent. Most coastal places visited are close to medium/large cities and two-days leports-fishing/tourism accounts for some 77 percent. However, it turned out that conflicts between leports-fishing participants and fishermen are not serious. The results of expenditure function estimation appear that the elasticity of per capita income is very high with 1.2660 and that there are negative relationships between leports-fishing expenditure and transportation/food/lodging costs. Assuming the annual national economic growth rate of 4 percent, it is anticipated that Korean leports-fishing population will increase to 3.18 million in 2010 and 4.07 million in 2015. Korean leports-fishing market potential in 2015, which is calculated based on per capita expenditure on leports-fishing, appears to amount to 1,400 billion won~1,600 billion won. The contribution of such market potential to the fishing households is expected to be 62.3~74.2 percent(934.5 billion won~111.3 billion won).

Estimation of diesel fuel demand function using panel data (시도별 패널데이터를 이용한 경유제품 수요함수 추정)

  • Lim, Chansu
    • Journal of Energy Engineering
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    • v.26 no.2
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    • pp.80-92
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    • 2017
  • This paper attempts to estimate the diesel fuel demand function in Korea using panel data panel data of 16 major cities or provinces which consist of diesel demands, diesel market prices and gross value added from the year 1998 to 2015. I apply panel GLS(generalized least square) model, fixed effect model, random effect model and dynamic panel model to estimating the parameters of the diesel fuel demand function. The results show that short-run price elasticities of the diesel fuel demand are estimated to be -0.2146(panel GLS), -0.2886(fixed effect), -0.2854(random effect), -0.1905(dynamic panel) respectively. And short-run income elasticities of the diesel fuel demand are estimated to be 0.7379(panel GLS), 0.4119(fixed effect), 0.7260(random effect), 0.4166(dynamic panel) respectively. The short-run price and income elasticities explain that demand for diesel fuel is price- and income-inelastic. The long-run price and income elasticities are estimated to be -0.4784, 1.0461 by dynamic panel model, which means that demand for diesel fuel is price-inelastic but income-elastic in the long run. In addition I apply dummy variable model to estimate the effect of 16 major cities or provinces on diesel demands. The results show that diesel demands is affected 10 regions on the basis of Seoul.

Demand Behavior for Housing Characteristics According to Individual Household's Characteristics- Application of product Characteristic Approach- (개별 가계특성에 따른 주택특성에 대한 수요행태 - 상품특성접근법의 적용-)

  • 이혜선;김용희
    • Journal of Families and Better Life
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    • v.5 no.2
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    • pp.65-82
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    • 1987
  • Product characteristic approach and hedonic method were explained and applied to demand behavior of housing for 360 households sampled from four districts of Seoul. Th major findings are: 1) Housing prices are determined by housing characteristics, i.e., basic structure, interior space, interior quality, and neighborhood quality. 2) as income increase , the demand for basic structure, interior space, interior of quality, and neighbor hood quality increases. As compared to the counties that have advanced housing financial systems, income elasticity form housing characteristics was low. 3) householder's educational level has insignificant effects on the demand for neighborhood quality. 4) the housing need of family is different to a family life cycle. In the first stage, the increase of income enhances the demand for basic structure. interior space, and interior quality, but inversed with neighborhood quality. In the second and third stages, the demand for basic structure, interior space, and interior quality increases as the income increases. 5) It is predicted that the larger the family size, the more housing space is required. But in the low-income group, an increase in family size results in a decrease in the demand for interior space because expenses for food and education are indispensable ones. In the middle -income group the demand for interior space, interior quality increases as the family size increases, In the high-income group, the larger the family size the more interior quality is demanded. As mentioned above, the demand for housing is derived form characteristics and the demand behavior far housing characteristics is varied with individual household's characteristics. Therefore, the fact that different housing needs according to various income groups should be considered in housing policy.

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Analysis of the Expenditure Behavior by Family Types: Comparison of single-mother families and two-parent families (가계유형에 따른 소비지출행동 분석: 편모가계와 양부모가계의 비교)

  • 차경욱
    • Journal of Families and Better Life
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    • v.21 no.3
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    • pp.61-73
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    • 2003
  • The purpose of this study was to compare the consumption expenditure patterns and the effects of socioeconomic variables on expenditure between single-mother families and two-parent families. From the 2001 Household Income and Expenditure Survey conducted by Korea National Statistical Office (KNSO), 693 single-mother families and 14,439 two-parent families were selected. A t-test was completed to examine how the expenditure patterns of two types of families differ. Total expenditures and expenditures on 11 consumption categories were modeled as functions of permanent income and other socioeconomic variables. Also, dummy variable interaction technique was used to examine whether the independent variables differently affected the expenditures between single-mother families and two-parent families. The results of this study indicated that there were differences between single-mother and two-parent families in the levels and shares of expenditures of each consumption category, and the effects of socioeconomic variables on expenditures. Single-mother families had spent less than did two-parent families in each consumption category. However, single-mother families had significantly higher expenditure shares for food at home, shelter, utilities, apparel and shoes, and education. Income elasticities for food at home, shelter, utilities, and education of single-mother families were significantly larger than those of two- parent families.

An Analysis of the Household Consumption Expenditure Structure by the Korean Economic-Development Plan Years (한국경제개발 계획년도별 가계소비지출 구조분석)

  • 박선미;김영숙
    • Journal of Families and Better Life
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    • v.10 no.2
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    • pp.1-18
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    • 1992
  • The purpose of this study is to consider the socio-economic development and policy in each five-year economic development plan influences of urban households and to seek a plan of household stability and reasonable consumption expenditure on the aspect of Family economics. Data is based on the "Annual Report on the Family Income and Expenditure survey" of the National Bureau of Statistic Economic Planning Board, Republic of Korea and analyzed as follows: First, in analysis to the structure of consumption expenditure, the averaged percentage of each item to total consumption expenditure is estimated by each Economics Development Plan year. Second, in order to analyze the relative importance value of household consumption expenditure, priority correlation order is derived from comparison of characteristics of household consumption expenditures by multiple regression analysis. Third the patterns of consumption expenditure of salary and wage earner's households in all cities are estimated by the household consumption function, marginal propensity to consume, and income elasticity, according to socio-economic variable, and demographic variable. In the recent Korean economy, income level of household is increased and consumption expenditure level is largely increased because of the execution of economic development plan. But the improvement of income derives the increasment of the consumption needs and over-consumption trend is spread due to the import liberization. And above all, the reasonable household management and economic life are needed.

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