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A Switching Regression Approach to Spatial Patterns in Residential Water Demand

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  • Théophile AZOMAHOU

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.

Suggested Citation

  • Théophile AZOMAHOU, 1999. "A Switching Regression Approach to Spatial Patterns in Residential Water Demand," Working Papers of BETA 9917, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    • Handle: RePEc:ulp:sbbeta:9917
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    Keywords

    Linear spline; public water pricing; spatial regim;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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