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We estimate the price elasticity of water demand with household-level data, structurally modeling the piecewise-linear budget constraints imposed by increasing-block pricing. We develop a mathematical expression for the unconditional price elasticity of demand under increasing-block prices and compare conditional and unconditional elasticities analytically and empirically. We test the hypothesis that price elasticity may depend on price structure, beyond technical differences in elasticity concepts. Due to the possibility of endogenous utility price structure choice, observed differences in elasticity across price structures may be due either to a behavioral response to price structure, or to underlying heterogeneity among water utility service areas.
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Econometric models, Prices, WaterShowing 1 featured edition. View all 1 editions?
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Water demand under alternative price structures
2007, National Bureau of Economic Research
in English
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Edition Notes
"November 2007"
Includes bibliographical references (p. 32-35).
Also available in PDF from the NBER world wide web site (www.nber.org).
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- Created September 29, 2008
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December 19, 2020 | Edited by MARC Bot | import existing book |
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April 25, 2009 | Edited by ImportBot | add OCLC number |
September 29, 2008 | Created by ImportBot | Imported from Oregon Libraries MARC record |