Estimating Electricity Demand: The Cost of Linearising the Budget Constraint

Rodney Maddock; Elkin Castaño; Frank Vella

doi:10.2307/2109670

Estimating Electricity Demand: The Cost of Linearising the Budget Constraint

Rodney Maddock; Elkin Castaño; Frank Vella

The Review of Economics and Statistics 1992

This paper derives elasticity estimates for the electricity demand of a cross section of residential customers in Medellin, Colombia, where prices follow a rising block scheme. It contrasts methods following Jerry Hausman (1979, 1985) with those based on Harvey Rosen (1976). To resolve the difference between the results produced by the two methods, it uses a generalized selectivity bias corrections method due to Frank Vella (1990). Copyright 1992 by MIT Press.

DOI: 10.2307/2109670
Volume: 74 (2)
Pages: 350
Export: BibTeX
Sources: openalex crossref