IDEAS home Printed from https://ideas.repec.org/p/pia/papers/00020-2015.html
   My bibliography  Save this paper

Bayesian SUR Heteroskedastic Model for Demand Elasticity Analysis in the Italian Wholesale Electricity Market

Author

Listed:
  • Maria Chiara D'ERRICO

Abstract

The Italian electricity sector undertook a deregulation process starting in the 2004 that has led to overcome the system of vertically integrated monopoly. This process led to the institution of Power Exchange (IPEX). The transition had not been simple since the definition of a proper market structure preserving competition is not an immediate task. In this context, the information provided by demand elasticity have to be exploited since the elasticity is strictly linked with the market power measured on the supply side. The work want to investigate what is the extent of buyer's elasticity and if buyers can change their consumption profiles within the day given the rational expectation of change in price. The research use a Bayesian approach applying a heteroskedastic SUR regression Model.

Suggested Citation

  • Maria Chiara D'ERRICO, 2015. "Bayesian SUR Heteroskedastic Model for Demand Elasticity Analysis in the Italian Wholesale Electricity Market," Working papers of the Department of Economics - University of Perugia (IT) 20/2015, Università di Perugia, Dipartimento Economia.
    • Handle: RePEc:pia:papers:00020/2015
    as

    Download full text from publisher

    File URL: http://www.econ.unipg.it/files/generale/wp_2015/WP_20_DErrico.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Demand Elasticity; Bayesian Estimation; Electricity Markets;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pia:papers:00020/2015. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ubaldo Pizzoli (email available below). General contact details of provider: https://edirc.repec.org/data/deperit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.