Corpus ID: 237532118

Semi-parametric estimation of the EASI model: Welfare implications of taxes identifying clusters due to unobserved preference heterogeneity

  title={Semi-parametric estimation of the EASI model: Welfare implications of taxes identifying clusters due to unobserved preference heterogeneity},
  author={Andr'es Ram'irez-Hassan and Alejandro L'opez-Vera},
We provide a novel inferential framework to estimate the exact affine Stone index (EASI) model, and analyze welfare implications due to price changes caused by taxes. Our inferential framework is based on a non-parametric specification of the stochastic errors in the EASI incomplete demand system using Dirichlet processes. Our proposal enables to identify consumer clusters due to unobserved preference heterogeneity taking into account, censoring, simultaneous endogeneity and non-linearities. We… Expand


Estimation of consumer demand systems with binding non-negativity constraints☆
Although the economic and statistical theory underlying the estimation of systems of demand functions is well developed, very little attention has been paid to the problems which arise when theExpand
Welfare Gains of the Poor: An Endogenous Bayesian Approach with Spatial Random Effects
We introduce a Bayesian instrumental variable procedure with spatial random effects that handles endogeneity, and spatial dependence with unobserved heterogeneity. We find through a limited MonteExpand
Semi‐Nonparametric IV Estimation of Shape‐Invariant Engel Curves
This paper studies a shape-invariant Engel curve system with endogenous total expenditure, in which the shape-invariant specification involves a common shift parameter for each demographic group in aExpand
Estimation of elasticities for electricity demand in Brazilian households and policy implications
Abstract This paper aims to identify the demand elasticity in energy consumption by Brazilian families. By using an original household-level sample, we are the first to identify the average price andExpand
Household energy prices and inequality: Evidence from German microdata based on the EASI demand system
This paper studies the distributional effects of rising energy costs for households. In contrast to most of the previous literature, our specification differentiates between electricity and heatingExpand
Estimating a Semiparametric Asymmetric Stochastic Volatility Model with a Dirichlet Process Mixture
In this paper, we extend the parametric, asymmetric, stochastic volatility model (ASV), where returns are correlated with volatility, by flexibly modeling the bivariate distribution of the return andExpand
Tricks With Hicks: The Easi Demand System
We invent Implicit Marshallian demands, which combine desirable features of Hicksian and Marshallian demands. We propose and estimate the Exact Affine Stone Index (EASI) implicit Marshallian demandExpand
Estimation in Large and Disaggregated Demand Systems: An Estimator for Conditionally Linear Systems
Empirical demand systems that do not impose unreasonable restrictions on preferences are typically non-linear. We show, however, that all popular systems possess the property of conditionalExpand
Modeling residential water demand: An approach based on household demand systems.
This paper uses a more flexible system of demand estimation, the Quadratic Almost Ideal Demand System (QUAIDS) (Banks et al., 1997), and reveals the existence in the authors' sample of substitution and complementary patterns as well as non-linearities in Engel curves for water consumption. Expand
Compensating Variation, Consumer's Surplus, and Welfare
The compensating variation was defined by J. R. Hicks (1942) as the amount one would have to deduct from a person's income to make him just as well off after a change in prices and income as he hadExpand