ESTIMAÇÃO DE FUNÇÕES DE DEMANDA RESIDENCIAL DE ÁGUA EM CONTEXTOS DE PREÇOS NÃO LINEARES

This paper estimates residential water demand functions taking into account the block rate pricing schedule usually set by water utilities. The progressive pricing, although preserves the convexity property on the budget set, induces the consumer budget constraints be non-linear, what violates the classical assumption of exogeneity of the explanatory variables required by the ordinary least squares method. An important conclusion is that price elasticity of water consumption is closely unitary.

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Year of publication:	2005
Authors:	Melo, José Airton Mendonça de ; Neto, Paulo de Melo Jorge
Institutions:	Associação dos Centros de Pós-Graduação em Economia - ANPEC

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Series:	Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting].
Type of publication:	Book / Working Paper
Language:	Portuguese
Classification:	C53 - Forecasting and Other Model Applications ; C31 - Cross-Sectional Models; Spatial Models
Source:	RePEc - Research Papers in Economics