income elasticity

Incorporating a household’s net sale status into a rearranged Slutsky equation with combined ordinary and endowment income effects, this paper aims to reinterpret the income elasticity of demand in the case of buying and selling and to associate it with types of goods in a novel manner. To this end, the Deaton’s (1989) net benefit ratio (NBR) approach is expressed as the difference between original and endowment budget shares, and formulated in its elasticity form as the difference between the Hicksian and Marshallian own-price elasticities at any given price, divided by the income elasticity. While the numerator in the latter expression is always positive (negative) for normal (inferior) goods, the denominator may be either positive or negative for either type of good, depending on the net sale position of the household. A positive NBR for a normal good implies that the household is a net demander of that good and that the income elasticity is positive. When the NBR is negative for such a good, it implies that the household is a net seller and that the income elasticity is negative. Again, a positive NBR for an inferior good refers to the fact that the household is a net demander and the income elasticity is negative, whereas a negative NBR reveals that the household is a net seller of that good, which has, unconventionally, a positive income elasticity.

 International trade causes that markets to become more competitive and small-medium sized enterprises (SMEs) learn to compete effectively within this increasingly competitive global market place. SMEs are able to take advantage of increased opportunities in domestic markets that follow from international trade. It is indeed a way for internationalization of SMEs. This paper analyzes income and price elasticities of the export model which has been specified for export market of SMEs€™ in the selected Asian countries. The estimated elasticities revealed the responsiveness of exporting goods supplied by the SMEs in these countries with respect to changes in different incomes and relative export price. Accordingly, we estimate an export regression model (including demand and supply equations) based on the cross-sectional observations of the selected Asian countries including China, Singapore, Thailand, Malaysia, Indonesia, India, the Philippines, Vietnam and Pakistan over the period 1990-2008. We have found that price and income elasticities are statistically significant and have the expected signs. The implication of our findings is that price and income are appropriate determinants for international trade expanded by Asian SMEs.       JEL Classification: C23, F14, O47, P42  

Khorasan Razavi Province suffers from the most critical groundwater resources in Iran, i.e. the groundwater decline has reached 1 m; 34 out of 37 water plains are banned in Khorasan Razavi Province. Recently, Mashhad plain has been fighting with the crisis of drought and water scarcity. Illegal harvesting from groundwater resources and the warming trend caused by change in climate have exacerbated the crisis. Comprehensive water resources management, assuming the complicated nature of water-related issues, rapid growth of population, water requirement for a variety of purposes, and limited water resources, requires novel methods to stack up technical, economic, environmental, social, and logical perspectives in an integrated forum. One of the tools for comprehensive water resources management is utilizing hydro-economic models to simulate the present status of drainage basins and evaluate the impacts of different scenarios and policies. The current study used a hydro-economic model to simulate the hydrological status of Mashhad plain and evaluate the impacts of different scenarios. Then, the agent-based model (ABM) was used in order to reach an agreement with stakeholders on executing different conservation scenarios. The hydro-economic model results revealed that reducing the water demand of the agricultural sector and, as a result, surface and groundwater consumption is possible through following adaptation scenarios. Implementing various adaptation scenarios may alter the present cultivation pattern. Moreover, the ABM results showed a significant difference between the volume of available water, due to the execution of strategies, and water demand, bringing about the lack of farmers’ cooperation regarding the implementation of conservation scenarios. However, through applying some incentive policies, a number of representative farmers may agree to pursue adaptation scenarios.