Rural Water Service Demand and Instrumental Price Estimates

David L. Chicoine, Steven Deller () and Ganapathi Ramamurthy

No 278627, 1985 Annual Meeting, August 4-7, Ames, Iowa from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: Demand for rural water service is estimated using micro-level data from a sample of Illinois rural water district customers. An instrumentalvariables approach is applied to correct for simultaniety bias resulting from block pricing practices using marginal price and Nordin's difference variable to account for lump-sum income effects implicit in discrete pricing structures. Price and income elasticities were -.36 and .19, respectively for the instrument model.

Keywords: Demand and Price Analysis; Environmental Economics and Policy; Land Economics/Use (search for similar items in EconPapers)
Pages: 16
Date: 1985-08
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https://ageconsearch.umn.edu/record/278627/files/aaea-1985-075.pdf (application/pdf)

Related works:
Working Paper: Rural Water Service Demand and Instrumental Price Estimates (1985)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea85:278627

DOI: 10.22004/ag.econ.278627

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