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The ultimate effects of initial cost internalization on economic aggregates would have to be modelled according to prevailing price elasticities and technological (production) structures.
Using these aggregates and the stock of durable goods, we estimate the elasticities of substitution between various consumption goods and monetary assets.
The same questions, however, can also be answered, at least qualitatively, by using time elasticities.
Higher persistence is associated with larger (absolute) tax elasticities, even if the model allows for altruistic bequests.
Similarly, changing the relative magnitude of aggregate supply and demand elasticities in the fourth and fifth rows does not destroy the incentives for activism.
Table 4 reports the estimated elasticities and marginal effects.
The elasticities exhibit wide ranges of variation from month t o m onth as expected.
Simultaneously, results from a conventional travel cost model reveal low elasticities with respect to costs incurred by visitors.
Calculated cost shares in the base year 1992 form the elasticities in the production functions.
The own-price elasticities are all negative, as predicted by the theory.
The parameters and denote the inverse of the consumption and labour supply elasticities.
Second, countries with different elasticities of substitution or union bargaining power may have considerably different stability properties of the equilibrium.
Moreover, the difference in income elasticities is not necessary for our results, merely amplifying the incentives of the rich region.
As employment elasticities of output decline, employment creation slows down.
Since we have price and income in logarithmic values, the relevant elasticities are equal to the estimate.
