A discrete/continuous choice approach to residential water demand under block rate pricing: reply.

A reply is presented to Donald M. Waldman's paper, “A Discrete/Continuous Choice Approach to Residential Water Demand under Block Rate Pricing: Comment”—published elsewhere in this issue—on Hewitt and Hanemann's approach to residential water demand under block rate pricing. Hewitt and Hanemann's a...

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Publicado en:Land Economics Vol. 76; no. 2; pp. 324 - 331
Autor principal: Hewitt, Julie A.
Formato: Artículo
Publicado: University of Wisconsin Press May 2000
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: A discrete/continuous choice approach to residential water demand under block rate pricing: reply.
      aug:
        au: Hewitt, Julie A.
      su:
        Water utility rates
        Water consumption
        Mathematical models
      sug:
        subj:
          Water utility rates
          Water consumption
          Mathematical models
      ab: A reply is presented to Donald M. Waldman's paper, “A Discrete/Continuous Choice Approach to Residential Water Demand under Block Rate Pricing: Comment”—published elsewhere in this issue—on Hewitt and Hanemann's approach to residential water demand under block rate pricing. Hewitt and Hanemann's approach propounded a theory of utility maximization with kinked budget constraints and examined a model of discrete/continuous choice for water demand. Waldman is correct in noting that the econometric theory in Hewitt and Hanemann is largely confined to the case of precisely two blocks. Two models are estimated that assume linear demand and additive and normally distributed errors, and the application of non-negativity-corrected likelihood to situations where the marginal price of the original block is zero is discussed.
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    language: English
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