Correcting for Truncation Bias in the Analysis of Experiments in Time-of-Day Pricing of Electricity

Dennis J. Aigner and Jerry Hausman

Bell Journal of Economics, 1980, vol. 11, issue 1, 131-142

Abstract: This paper applies methods for analyzing data from samples that have been chosen by restricting the target population in discernible ways to date from a 1976 experiment in time-of-day pricing of electricity for residential customers in Arizona. We find that whereas conventional estimation methods lead to the conclusion that the peak price elasticity of demand is larger (in absolute value) than either the corresponding midpeak or offpeak elasticity, once truncation bias is accounted for, the peak elasticity is smaller than the other two. This finding accords with a preliminary analysis of data from Wisconsin, where no such sample truncation was present.

Date: 1980
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://links.jstor.org/sici?sici=0361-915X%2819802 ... O%3B2-O&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rje:bellje:v:11:y:1980:i:spring:p:131-142

Ordering information: This journal article can be ordered from
https://editorialexp ... i-bin/rje_online.cgi

Access Statistics for this article

More articles in Bell Journal of Economics from The RAND Corporation
Bibliographic data for series maintained by ().