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Estimating Electricity Demand: The Cost of Linearising the Budget Constraint

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Author Info

  • Maddock, Rodney
  • Castano, Elkin
  • Vella, Frank

Abstract

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.

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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 74 (1992)
Issue (Month): 2 (May)
Pages: 350-54

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Handle: RePEc:tpr:restat:v:74:y:1992:i:2:p:350-54

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Web page: http://mitpress.mit.edu/journals/

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Cited by:
  1. Medina Carlos & Leonardo Morales, 2008. "Demanda por servicios públicos domiciliarios y pérdida irrecuperable de los subsidios: el caso colombiano," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE.
  2. Espinosa Acuña, Óscar A. & Vaca González, Paola A. & Avila Forero, Raúl A., 2013. "Elasticidades de demanda por electricidad e impactos macroecon_omicos del precio de la energía eléctrica en Colombia || Elasticity of Electricity Demand and Macroeconomics Impacts of Electricity Pri," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 16(1), pages 216-249, December.
  3. Theresa Chaudhry, 2010. "Estimating Residential Electricity Demand Responses in Pakistan’s Punjab," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 15(Special E), pages 107-138, September.
  4. Carter, Adrian & Craigwell, Roland & Moore, Winston, 2011. "Price Reform and Household Demand for Electricity," MPRA Paper 40934, University Library of Munich, Germany.
  5. Reiss, Peter C. & White, Matthew W., 2002. "Household Electricity Demand, Revisited," Research Papers 1830, Stanford University, Graduate School of Business.
  6. Medina, Eva & Vicéns, José, 2011. "Factores determinantes de la demanda eléctrica de los hogares en España: una aproximación mediante regresión cuantílica/Determinants of Household Electricity Demand in Spain: An Approach through ," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 29, pages 515-538, Agosto.
  7. Carlos Medina & Leonardo Morales, 2006. "Stratification and Public Utility Services in Colombia: Subsidies to Households or Distortions on Housing Prices?," BORRADORES DE ECONOMIA 003528, BANCO DE LA REPÚBLICA.
  8. Rigoberto Ariel Yepez-Garcia & Todd M. Johnson & Luis Alberto Andres, 2011. "Meeting the Balance of Electricity Supply and Demand in Latin America and the Caribbean," World Bank Publications, The World Bank, number 2334, October.

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