Demand elasticity

[AnaisXi]

Hi everyone,

Here are two questions about demand elasticity. For the past time, I just calculate drivers by myself for each demand. It is easier way to do but up to now we have to optimize the model and set demand elasticity for final demands. Thus there are two questions:

First to share Amit's reply for demand:

Demand: elasticity has the standard interpretation – growth of demand = growth of driver x Elasticity. The sensitivity series is just something to have a direct control over demand for calibration or some other reason. It is used as growth of demand = growth of driver x Elasticity + Sensitivity

 Thus based on this, my question are:

1. for example. For transportation sector.

   D_CAR0=K*Driver^E   (K is the demand mode for CAR)

  D_CARt=K*Driver t ^E

s.t. Dt/D0=(growth of driver)^E

So the mode K cannot be displayed... Do we have some possible way to handle this?

2. Growth of demand(t)=Growth of demand(0)*growth of driver^calibration

Is it possible A) to have two drivers (unrelated to each other) for one demand at the same time?

                  B) to have two drivers (related to each other, like D is driven by A, and A is driven by C)?

Thank you in advance.

Best!

Anais Xi