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Estimando la Demanda Residencial por Electricidad en Chile: El Consumo es Sensible al Precio Author info | Abstract | Publisher info | Download info | Related research | Statistics José Miguel Benavente
Alexander Galetovic
Ricardo Sanhueza
Pablo Serra
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We estimate the demand for electricity by households in Chile. We use a monthly panel of 18 distribution companies, which starts in January 1995 and runs through december 2001. The one-month price elasticity of demand is -0.0548 and -0,39 in the long run. That is, if tariffs rise permanently by 10% today, consumption falls by 0,548% next month and 3,9% in the long run. With two practical examples we show that these elasticities are "large" economically. The metholodogical contribution of the paper is a method to estimate dynamic panels with monthly data, and protracted adjustment processes when both the number of individuals and periods is "small".
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Article provided by Instituto de Economía. Pontificia Universidad Católica de Chile. in its journal Cuadernos de Economía .
Volume (Year): 42 (2005)
Issue (Month): 125 ()
Pages: 31-61
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Handle: RePEc:ioe:cuadec:v:42:y:2005:i:125:p:31-61Contact details of provider: Postal: Avda. Vicu� Mackenna 4860, Macul, Santiago Phone: (562) 686-4303 Fax: (562) 553-1664 Email: Web page: http://www.economia.puc.cl/ More information through EDIRC
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Keywords: Dynamic Panels ; Elasticity ; Montecarlo ; Seasonality ; Other versions of this item:
Find related papers by JEL classification: C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
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