Reconsidering the Economics of Demand Analysis with Kinked Budget Constraints.
This paper has two objectives. First, we identify a problem with the ability of the discrete-continuous choice framework and conditional demand functions to fully describe consumer preferences in the presence of kinked budget constraints. Second, we propose and illustrate an alternative, preference-...
| Publicado en: | Land Economics Vol. 86; no. 1; pp. 173 - 191 |
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| Autores principales: | , |
| Formato: | Artículo |
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University of Wisconsin Press
February 2010
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=511474327&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 511474327 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: February 2010 vid: 86 iid: 1 pid: 249 pub: University of Wisconsin Press artinfo: ui: 511474327 ppf: 173 ppct: 18 formats: tig: atl: Reconsidering the Economics of Demand Analysis with Kinked Budget Constraints. aug: au: Strong, Aaron Smith, V. Kerry su: Water utility rates Economic demand Mathematical models Water consumption sug: subj: Water utility rates Economic demand Mathematical models Water consumption ab: This paper has two objectives. First, we identify a problem with the ability of the discrete-continuous choice framework and conditional demand functions to fully describe consumer preferences in the presence of kinked budget constraints. Second, we propose and illustrate an alternative, preference-based method for estimating consumer responses to price changes under these conditions. This framework recognizes that commitments to commodities such as pools or outdoor landscaping influence how water consumption responds to price changes as part of the long-run consumption adjustments. With microdata on household choices, this approach could be used to design increasing block rate structures that recognize the differences in water consumption responses with these commitments. Reprinted by permission of the publisher. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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