Books > Earth & environment > The environment > Environmental economics
|
Buy Now
Current Issues in the Economics of Water Resource Management - Theory, Applications and Policies (Hardcover, 2002 ed.)
Loot Price: R3,228
Discovery Miles 32 280
|
|
Current Issues in the Economics of Water Resource Management - Theory, Applications and Policies (Hardcover, 2002 ed.)
Series: Economy & Environment, 23
Expected to ship within 12 - 17 working days
|
The marginal price elasticities estimated by Martinez-Espineira
conforms to expectation. The price specification that accounts for
the changing proportion of water users in each block yields a
higher elasticity (-0. 47) compared to the spec ification ignoring
this feature of the data. However, this difference is not found to
be statistically significant, a result attributed to the low power
of the test (small sample size limiting the accuracy of estimates).
In conclusion, the paper provides a theoretically correct price
specification for demand functions under block pricing and
aggregate data. The empirical findings in the paper, however, are
not conclusive and further empirical work using more data and
alternative (nonlinear) demand functions, is needed to show the
practical implications of the arguments put forward by the
Martinez-Espineira's paper. Static empirical consumer demand
functions estimated with aggregate data are well known to suffer
form serial correlation and other statistical problems asso ciated
with misspecified dynamics. These dynamics arise because consumers
do not react immediately to a change in prices due to their largely
predetermined lifestyle. In the case of demand for water, for
example, current purchases can be largely predetermined due to
commitments arising from past purchases such as swimming pools,
bathtubs, dishwashing machines, etc. Muellbauer and Pashardes
(1992) show that the autoregressive nature of consumer demand data
can be cap tured in a theoretically consistent manner by
incorporating intertemporal aspects of consumer behaviour in the
model through habit formation and durability."
General
Is the information for this product incomplete, wrong or inappropriate?
Let us know about it.
Does this product have an incorrect or missing image?
Send us a new image.
Is this product missing categories?
Add more categories.
Review This Product
No reviews yet - be the first to create one!
|
You might also like..
|
Email address subscribed successfully.
A activation email has been sent to you.
Please click the link in that email to activate your subscription.