1. Estimated Demand Elasticities by 2 Methods
Multiple Regression
Estimated Demand Elasticities by 2 Methods
H. Schultz (1933). “A Comparison of Elasticities of Demand by Different Methods,” Econometrica, Vol. 1, #3, pp
H. Schultz(1925). “Appendix 2,” Journal of Political Economy, Vol. 33, #6, pp

2. Data Description and Models
Data: U.S. Sugar Consumption and Prices:Years
Dependent Variable: Consumption per Capita (Q, lbs)
Independent Variables:
Real Price (BLS adjusted 1913=100, all commodities)
Year (t, year – 1905)
Models: Linear and Nonlinear (Intrinsically Linear):

3. Data
Note: Sugar is in 1000s of Tons, Pop is in Millions  Q = 2*Sugar/Pop

4. Elasticity of Demand

5. Effects of Time Shift (Ignoring Error terms)

6. Regression Results – Model 1

7. Regression Results – Model 2

10. Estimated Elasticities of Demand and Q/t
Model 1:
Model 2: