Table 5

Price elasticity estimates

Price elasticity
Long-run price elasticity0.717***
Long-run bootstrapped price elasticity* (500 replication)0.684 (±0.017)***
Short-run price elasticity0.465**
Coefficient on lagged residual0.518**
Post diagnostic tests
Breusch-Pagan/Cook-Weisberg test for heteroskedasticityχ2(1)=1.53; Prob>χ2=0.2156
Durbin's alternative test for autocorrelationProb>χ2=0.577; χ2(1)=0.447; Lags 1
Ramsey Regression Equation Specification Error Test (RESET) testF(3, 9)=3.41; Prob>F = 0.0734
Jarque-Bera normality testChi(2)=0.6319; Prob>χ2=0.7291
Mean Variance inflation factor (VIF)1.31
  • SEs in parentheses: ***p<0.01, **p<0.05, *p<0.1.

  • *Bootstrapped SE using 1000 replications for long run price elasticity is given in bracket.