An Analysis of the Price Elasticity of Demand for Household Appliances

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This report summarizes our study of the price elasticity of demand for home appliances, including refrigerators, clothes washers, and dishwashers. In the context of increasingly stringent appliance standards, we are interested in what kind of impact the increased manufacturing costs caused by higher efficiency requirements will have on appliance sales. We begin with a review of existing economics literature describing the impact of economic variables on the sale of durable goods.We then describe the market for home appliances and changes in this market over the past 20 years, performing regression analysis on the shipments of home appliances and relevant economic ... continued below

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Fujita, Kimberly; Dale, Larry & Fujita, K. Sydny January 25, 2008.

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Description

This report summarizes our study of the price elasticity of demand for home appliances, including refrigerators, clothes washers, and dishwashers. In the context of increasingly stringent appliance standards, we are interested in what kind of impact the increased manufacturing costs caused by higher efficiency requirements will have on appliance sales. We begin with a review of existing economics literature describing the impact of economic variables on the sale of durable goods.We then describe the market for home appliances and changes in this market over the past 20 years, performing regression analysis on the shipments of home appliances and relevant economic variables including changes to operating cost and household income. Based on our analysis, we conclude that the demand for home appliances is price inelastic.

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18

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  • Report No.: LBNL-326E
  • Grant Number: DE-AC02-05CH11231
  • DOI: 10.2172/929429 | External Link
  • Office of Scientific & Technical Information Report Number: 929429
  • Archival Resource Key: ark:/67531/metadc899781

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  • January 25, 2008

Added to The UNT Digital Library

  • Sept. 27, 2016, 1:39 a.m.

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  • Jan. 4, 2017, 4:57 p.m.

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Fujita, Kimberly; Dale, Larry & Fujita, K. Sydny. An Analysis of the Price Elasticity of Demand for Household Appliances, report, January 25, 2008; Berkeley, California. (digital.library.unt.edu/ark:/67531/metadc899781/: accessed October 21, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.