A discrete/continuous choice approach to residential water demand under block rate pricing.
The lengthy literature on residential demand for water service has focused on the model specification and estimation issues arising from block rate pricing of water services. A study investigated another approach to the specification of the water demand model under block rate pricing—the discrete/c...
| Published in: | Land Economics Vol. 71; pp. 173 - 193 |
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| Main Authors: | , |
| Format: | Article |
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University of Wisconsin Press
May 1995
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| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=510132538&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 510132538 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00237639 LAE jtl: Land Economics issn: 00237639 maglogo: N pubinfo: dt: May 1995 vid: 71 pid: 249 pub: University of Wisconsin Press artinfo: ui: 510132538 10.2307/3146499 ppf: 173 ppct: 20 formats: fmt: @attributes: type: T tig: atl: A discrete/continuous choice approach to residential water demand under block rate pricing. aug: au: Hewitt, Julie A. Hanemann, W. Michael su: Water utility rates Water consumption Mathematical models sug: subj: Water utility rates Water consumption Mathematical models ab: The lengthy literature on residential demand for water service has focused on the model specification and estimation issues arising from block rate pricing of water services. A study investigated another approach to the specification of the water demand model under block rate pricing—the discrete/continuous (D/C) choice model. A set of household-level panel data for Denton, Texas, in the summer months in each year from 1981 to 1985, drawn from a previously published study, were used for the empirical analysis. In a striking result, the D/C choice model was found to produce price elasticity estimates that are much more elastic than prior results based on regression models where the discrete choice is not explicitly modeled. The D/C choice model responds to a frequent criticism by water utility managers of econometric studies of residential water demand by allowing directly for economic and noneconomic influences in a model that is utility theoretic. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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