For the consumer units in t he sample, income elasticity
varied by quarter, as did the effects of age, marital status, African-American ethnicity, household size, region of residence, and home tenure.
With respect to income elasticity
, the proposed analytical framework posits low elasticities for the goods or services that are the primary reason for the trips.
Other things being equal, a high price elasticity of demand will tend to produce a contraction, while a low income elasticity
of demand relative to that for the progressive sector's output will be conducive to reduced output.
As Feldstein (1988) points out, once survey data are corrected for transitory income and employer-paid health insurance premiums, the estimates of income elasticity
tend to be approximately one.
Analysis of the income elasticity
was determined in 2,418 Slovak households.
Cigarette demand is inelastic to price and income, however, the demand price elasticity is a bit larger in absolute value than the income elasticity
Goldstein and Khan (1978) find exports of seven developed countries out of total eight are more elastic to change as compared to the income of rest of the world, whereas, income elasticity
of exports demand for US is found to be less than unity.
8) The objective of Freeman (2012) is to obtain an estimate of the income elasticity
of healthcare spending, and therefore he includes few non-income factors.
is denoted by the coefficients [[alpha].
The estimated outcomes depicts that for a panel of GCC countries income elasticity
of oil consumption is positive and significant while price elasticity of energy consumption is negative and statistically insignificant.
Most studies using aggregate lottery-demand models have estimated an income elasticity
of demand that is less than one (and conclude that lotteries are regressive), whereas evidence on the cross-price elasticity of demand is mixed.
If income elasticity
is (positive and) not greater than one, that is, insurance is a normal good, then from a macroeconomic viewpoint, its share in the total economy shrinks--or at most remains unchanged--along with economic development.