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ALTERNATIVE DEMAND MODEL ESTIMATORS FOR BLOCK RATE PRICING 1
Author(s) -
Billings R. Bruce
Publication year - 1987
Publication title -
jawra journal of the american water resources association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.957
H-Index - 105
eISSN - 1752-1688
pISSN - 1093-474X
DOI - 10.1111/j.1752-1688.1987.tb00814.x
Subject(s) - estimator , ordinary least squares , econometrics , block (permutation group theory) , economics , elasticity (physics) , statistics , mathematics , geometry , materials science , composite material
Three alternative demand model estimators for water sold under block rate tariffs are examined. The models are conceptually discussed and empirically estimated using cross‐section and time‐series data from Tucson, Arizona. While all three techniques produce plausible elasticity estimates, the ordinary least squares and censored sample techniques are shown to produce statistically biased results.