topic Re: Price change and volume change (Price Elasticity Concept) in SAS Programming

Price change and volume change (Price Elasticity Concept)

Ganeshk — Fri, 20 May 2016 09:13:25 GMT

Hi,

I have table like as shown below:

Prod_ID	Date	SP	Vol
101	01Jan2015	18	50
101	04Jan2015	19	55
101	07Jan2015	20	40
101	12Jan2015	19	53
101	15Jan2015	20	37
101	19Jan2015	18	52
101	24Jan2015	19	54
101	25Jan2015	21	32
101	29Jan2015	18	51
101	31Jan2015	20	42
102	01Jan2015	9	40
102	04Jan2015	10	35
102	07Jan2015	8	45
102	12Jan2015	7	44
102	15Jan2015	9	42
102	19Jan2015	11	39
102	24Jan2015	8	48
102	25Jan2015	11	41
102	29Jan2015	9	45
102	31Jan2015	10	36

Now i need to calculate price change and volume change:

The formula used to calculate the percentage change in SP is:
Price Change= [SP(NEW) - SP(OLD)] / SP(OLD)

The formula used to calculate the percentage change in Vol is:
Volume Change=[Vol(NEW) - Vol(OLD)] / Vol(OLD)

Elasticity= Price Change/Volume Change

So my result should be:

Prod_ID	Date	SP	Vol	Price Change	Volume Change	Elasticity
101	01Jan2015	18	50	0	0	0
101	04Jan2015	19	55	0.055555556	0.1	1.8
101	07Jan2015	20	40	0.052631579	-0.272727273	-5.181818182
101	12Jan2015	19	53	-0.05	0.325	-6.5
101	15Jan2015	20	37	0.052631579	-0.301886792	-5.735849057
101	19Jan2015	18	52	-0.1	0.405405405	-4.054054054
101	24Jan2015	19	54	0.055555556	0.038461538	0.692307692
101	25Jan2015	21	32	0.105263158	-0.407407407	-3.87037037
101	29Jan2015	18	51	-0.142857143	0.59375	-4.15625
101	31Jan2015	20	42	0.111111111	-0.176470588	-1.588235294
102	01Jan2015	9	40	0	0	0
102	04Jan2015	10	35	0.111111111	-0.125	-1.125
102	07Jan2015	8	45	-0.2	0.285714286	-1.428571429
102	12Jan2015	7	44	-0.125	-0.022222222	0.177777778
102	15Jan2015	9	42	0.285714286	-0.045454545	-0.159090909
102	19Jan2015	11	39	0.222222222	-0.071428571	-0.321428571
102	24Jan2015	8	48	-0.272727273	0.230769231	-0.846153846
102	25Jan2015	11	41	0.375	-0.145833333	-0.388888889
102	29Jan2015	9	45	-0.181818182	0.097560976	-0.536585366
102	31Jan2015	10	36	0.111111111	-0.2	-1.8

I also have doubt whether this is the approach to do price elasticity? Please share your thoughts on this

Thanks

Ganesh K

Re: Price change and volume change (Price Elasticity Concept)

Reeza — Fri, 20 May 2016 14:14:12 GMT

What is your question? Do you need help implementing the formula's in SAS? Or with the methodology of your problem, which would be considered out of scope for this forum.

Re: Price change and volume change (Price Elasticity Concept)

Ksharp — Sat, 21 May 2016 04:22:28 GMT

I am familiar with these concepts .



data have;
infile cards truncover expandtabs;
input Prod_ID	Date : $20.	SP	Vol;
cards;
101	01Jan2015	18	50
101	04Jan2015	19	55
101	07Jan2015	20	40
101	12Jan2015	19	53
101	15Jan2015	20	37
101	19Jan2015	18	52
101	24Jan2015	19	54
101	25Jan2015	21	32
101	29Jan2015	18	51
101	31Jan2015	20	42
102	01Jan2015	9	40
102	04Jan2015	10	35
102	07Jan2015	8	45
102	12Jan2015	7	44
102	15Jan2015	9	42
102	19Jan2015	11	39
102	24Jan2015	8	48
102	25Jan2015	11	41
102	29Jan2015	9	45
102	31Jan2015	10	36
;
run;
data want;
 set have;
 by Prod_ID;
 PriceChange=(SP-lag(SP))/lag(SP);
 VolumeChange=(Vol-lag(Vol))/lag(Vol);
 Elasticity= PriceChange/VolumeChange;
 if first.Prod_ID then do;
  PriceChange=0;
  VolumeChange=0;
  Elasticity=0;
 end;
run;

Re: Price change and volume change (Price Elasticity Concept)

Ganeshk — Sat, 21 May 2016 04:53:03 GMT

Hi Ksharp,

Thanks for code. I need to know is this the method used to arrive Price elasticity? Since i am new to work on this concept. I went through this link : http://support.sas.com/rnd/app/examples/ets/simpelast/sas.htm

Do i need to consider some of other factor?

Overall i want to know how to arrive Price elasticity?

Thanks,

Ganesh K

Re: Price change and volume change (Price Elasticity Concept)

Ksharp — Sat, 21 May 2016 06:38:43 GMT

Sorry. I can not understand what you mean. Maybe you should start another new session to discuss this topic.