PT  - JOURNAL ARTICLE
AU  - Clarke, Andrew J.
AU  - Colby, Bonnie G.
AU  - Thompson, Gary D.
TI  - Household Water Demand Seasonal Elasticities: A Stone-Geary Model under an Increasing Block Rate Structure
AID  - 10.3368/le.93.4.608
DP  - 2017 Nov 01
TA  - Land Economics
PG  - 608--630
VI  - 93
IP  - 4
4099  - http://le.uwpress.org/content/93/4/608.short
4100  - http://le.uwpress.org/content/93/4/608.full
SO  - Land Econ2017 Nov 01; 93
AB  - Using household-level panel data from Tucson, Arizona, and a unique set of highly disaggregated control variables, we estimate residential demand for water via a Stone-Geary specification. The Stone-Geary functional form allows price elasticity of demand to vary with quantity consumed, price, and income and enables estimation of a threshold level of consumption below which demand is considered perfectly price inelastic. An encompassing test of consumer price response reveals evidence favoring a lagged average price specification rather than one using lagged marginal price. The estimated model also finds substantial seasonal variation in price elasticity and declining consumer price responsiveness. (JEL C23, Q25)