Consistent specifications of the allocative inefficiency function in cost plus input share equations systems may be difficult, if not impossible, to find because most plausible ones violate certain reasonable a priori conditions. Moreover, the models to which they lead give rise to highly...

We study water demand among non-tap households in three cities in El Salvador and in marginal barrios in Tegucigalpa, Honduras, using data from identical household studies in the four cities. We estimate water demand functions separately for El Salvador and Tegucigalpa, using a two-step...