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- W2789769957 abstract "Estimating the price elasticity of demand is useful for the design of a Goods andService Tax (GST), which is currently being discussed as a policy option in Bhutan. As it isdescribed in the research, price elasticity estimates allow policy-makers to differentiatebetween inelastic and elastic goods, which is useful when predicting consumer’s demand asa result of price changes and when making suggestions for GST reform that can maximizerevenue collection and minimize welfare implications. In this paper, the author attempts to estimate the price elasticity of demand for 12food items in Bhutan, using data from the Bhutan Living Standards Survey (BLSS) 2012. Thestudy suggests that the price elasticity of demand for cooking oil, chillies, maize andvegetables are similar for both rural and urban areas and for all income groups. Theelasticities vary between different living areas and different income groups for fish, meat,fruits, tea, rice, milk, cheese, and wheat. The demand for rice, meat and chillies arerelatively price inelastic for rural households compared to their urban counterparts,indicating a strong preference towards those food items. The price elasticity of demandincreases as income rises for all food items except milk, fish and fruits, whose elasticitydecreases as income increases, suggesting that rich household’s preference towards healthyand high-quality items. Overall, the price elasticities of the majority of food items varybetween -0.7 and -1.6, indicating that there is room for revenue collection by introducing alow GST that covers broad range of items. In the study, the author used general scientific methods: analysis, synthesis,comparison, generalization. The author suggests a policy (fiscal-tax) recommendation that can achieve GSTrevenue objectives and address welfare and equity issues." @default.
- W2789769957 created "2018-03-29" @default.
- W2789769957 creator A5022522072 @default.
- W2789769957 date "2017-06-01" @default.
- W2789769957 modified "2023-09-23" @default.
- W2789769957 title "ESTIMATING THE PRICE ELASTICITY OF DEMAND FOR FOOD IN BHUTAN: ARE ELASTICITIES DIFFERENT BETWEEN URBAN AND RURAL AREAS AND AMONG DIFFERENT INCOME GROUPS?" @default.
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