Does Wal-Mart Sell Inferior Goods?
- Subject: Retail, Wal-Mart, Target, Inferior Goods
- jel: jel:L81 | jel:D12
I estimate the aggregate income elasticity of Wal-Mart's and Target's revenues using quarterly data for 1997-2006. I find that Wal-Mart's revenues increase during bad times, whereas Target's revenues decrease, consistent with Wal-Mart selling "inferior goods" in the tec... View more