Estimates of Consumer Price Response in Pakistan using Market Prices as Data

Abstract

The main emphasis of the paper is to illustrate a methodology that can be readily applied to future data analysis. The results presented here indicate that plausible and detailed estimates of consumer response to price changes can be obtained using household expenditure survey sand published price series in a manner that does not require the assumptions of additive preferences. It is noted that a fixed-effects. approach which sweeps out spatial long-run price differences can be employed as a replicated time series even over a limited period of four quarters