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A divisia version of the country-product-dummy method |
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| Authors: | Karl Voltaire Edward J Stack |
| Institution: | University of Chicago, Chicago, IL 60637, USA |
| Abstract: | A Divisia version of the country-product-dummy method of Kravis et al. is obtained and extended to include income as an explanatory variable. Income elasticities of relative prices for eight goods across 15 countries are obtained and compared with the income elasticities of the demand for these goods. |
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