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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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Publisher 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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  1. Carlos Medina & 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. [Downloadable!]
  2. Reiss, Peter C. & White, Matthew W., 2002. "Household Electricity Demand, Revisited," Research Papers 1830, Stanford University, Graduate School of Business. [Downloadable!]
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