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A Model of Household Heating Demand: Home Production with Satiety and an Endowment
Author(s) -
ANDERSON JOAN GRAY,
KUSHMAN JOHN E.
Publication year - 1987
Publication title -
journal of consumer affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.582
H-Index - 62
eISSN - 1745-6606
pISSN - 0022-0078
DOI - 10.1111/j.1745-6606.1987.tb00185.x
Subject(s) - endowment , economics , production (economics) , welfare , microeconomics , market economy , philosophy , epistemology
A model of household indoor temperature choice is developed and empirically implemented taking into account that indoor temperature exhibits satiety, that temperature is an output of home production, and that there is a natural endowment of outdoor temperature. The model is applied to home heating choices and the welfare effects of an insulation retrofit requirement.