Estimating Demand Elasticity
- Estimating demand elasticity difficult due to simulaneity of supply and demand.
- Instrumental variables can help.
- Review three papers using three different methods to estimate the same parameter.
Required ReadingsHughes, Knittel and Sperling (2008) [link]
Davis and Killian (2011) [link]
Li, Linn and Muehlegger (2014) [link]