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A Switching Regression Approach to Spatial Patterns in Residential Water Demand

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  • Théophile AZOMAHOU
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    Abstract

    This study explores spatial regimes variation and the impact of public sector wa ter pricing for municipality aggregate residential water demand including electricity price effe cts. I compare estimations from two cross-sections (1988.1 and 1993.1) on a French lattice samp le, and propose a parametric spatial autoregressive regime switching model where water a verage price is approximated by a linear spline based on nonparametric regressions. I f ind evidence of spatial dependence. Consumers respond to both water and electricity average p rice. Changes in electricity price induce modifications of water consumption distribut ion according to patterns of water use. Public sector pricing results in shifts of role in reg imes between periods.

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    Bibliographic Info

    Paper provided by Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg in its series Working Papers of BETA with number 9917.

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    Date of creation: 1999
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    Handle: RePEc:ulp:sbbeta:9917

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    Related research

    Keywords: Linear spline; public water pricing; spatial regim;

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