Elasticities in AIDS Models

• DOI: 10.2307/1242346
• Publication Date: 2006-07-05T09:10:38Z
• Authors: Richard Green; Julian M. Alston
• Keywords: 0502 economics and business; 05 social sciences

Abstract In the literature, a variety of approaches have been used to calculate demand elasticities in almost ideal system (AIDS) models demand. It is common estimate linear approximate (LA/AIDS) instead AIDS. When LA/AIDS estimated, all previously reported compute are theoretically incorrect. This paper presents correct formulas for and illustrates potential errors from using incorrect computing formulas.