Abstract
To specify demand in most water allocation problems, researchers face a tradeoff between flexibility and parsimony. Flexible forms are less constraining on elasticity estimates, but require large parameter sets that tend to cause poor out-of-sample forecasts and computational difficulties. Using a five-year panel of Texas municipalities, the parsimonious Stone-Geary form yields estimated demand functions that are comparable to flexible form results. The Stone-Geary specification also provides an estimate of the portion of water use that may not be responsive to price, and is useful in analysing price structures and designing conservation policies. (JEL Q25, C23)
This article requires a subscription to view the full text. If you have a subscription you may use the login form below to view the article. Access to this article can also be purchased.
Log in using your username and password
Purchase access
In this issue
Jump to section
Related Articles
Cited By...
- Measuring the Income Elasticity of Water Demand: The Importance of Publication and Endogeneity Biases
- Household Water Demand Seasonal Elasticities: A Stone-Geary Model under an Increasing Block Rate Structure
- The joint effect of water price changes and pressure management, at the economic annual real losses level, on the system input volume of a water distribution system
- Water affordability and social equity in Tunisian governorates: a distributive approach
- Urban Water Demand with Periodic Error Correction