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Dominique Hanssens's picture

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Correct. This elacity has no particular time dimension. They're not necessarily long run, so it's okay to call them short run, whether or not there is a translation into a long run effects. It really depends on two things. First of all is the magnitude of the short term effect. What I like to tell my students is if the short term effect is zero and the long term effect is twice that, which is a good approximation, two times zero is still zero. And so you can have a good short term effect. In many cases, to get a long-term effect, you can actually conservatively speaking, multiply that by approximately two, if you want to do it sort of in a quick and dirty way. But of course the much more data rich way is to take a look at specific data and take a look at, for example, on purchase results and repeat purchases, and then you get a real long-term effect.