Panel data analysis of japanese residential water demand using a discrete/continuous choice approach

Koji Miyawaki, Yasuhiro Omori, Akira Hibiki

Research output: Contribution to journalArticlepeer-review

13 Citations (Scopus)

Abstract

Block rate pricing is often applied to income taxation, telecommunication services, and brand marketing, in addition to its best-known application in public utility services. Under block rate pricing, consumers face piecewise-linear budget constraints. A discrete/continuous choice approach is usually used to account for piecewise-linear budget constraints in demand and price endogeneity. A recent study proposed a method to incorporate a separability condition ignored by previous studies, by implementing a Markov chain Monte Carlo simulation based on a hierarchical Bayesian approach. To extend this approach to panel data, our study proposes Bayesian hierarchical models incorporating random and fixed individual effects.

Original languageEnglish
Pages (from-to)365-386
Number of pages22
JournalJapanese Economic Review
Volume62
Issue number3
DOIs
Publication statusPublished - 2011 Sep

Keywords

  • C11
  • C23
  • C24
  • Q25

ASJC Scopus subject areas

  • Economics and Econometrics

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