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Subsequently, the relationship between the sectors is analyzed on basis of cross price elasticity.
The price and cross price elasticities are relatively low, indicating consumers׳ indifference in Pakistan towards price escalation.
This is reflected by the statistically significant and negative corn-soybean cross price elasticity of corn acreage in most countries including in Argentina, Brazil, China, and the USA.
This study examines both the short and long-term dynamics of natural gas consumption in Pakistan through an econometric model, sector-specific income, price and cross price elasticities of natural gas demand are estimated over the period 1978 2011.
‡Own-price elasticities, with remaining cells showing cross price elasticities.
Table 3 shows selected own price and cross price elasticity estimates.
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Thus, the findings on the cross-price effect are inconsistent.
Rice and cassava prices do not have significant cross-price effects.
The results of the cross-price effects have implications for a more suitable cost-sharing design.
Therefore, it is important to examine both the cross-price and own-price effect.
Table 4 Own and cross-price compensated elasticity estimates a Bread Rice Meats Dairy Fruits & veg.
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