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Block Switching in Demand Subject to Declining Block Rates - A New Approach

Dubin, Jeffrey A. (1987) Block Switching in Demand Subject to Declining Block Rates - A New Approach. In: Papers and proceedings of the eighth annual North American Conference : the changing world energy economy. International Association of Energy Economists , Washington, DC, pp. 243-247. http://resolver.caltech.edu/CaltechAUTHORS:20170915-120248778

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Abstract

This paper considers the problem of estimating demand subject to a non-linear rate schedule for commodities such as electricity, water, and telecommunications. We calculate the probability of block switching for non-marginal changes in price. We also determine whether consistent estimation corrections for price endogeneity are likely to be of much value and whether the movement between marginal and intra-marginal blocks is a likely outcome of rate increases.


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Additional Information:© 1987 International Association of Energy Economists.
Record Number:CaltechAUTHORS:20170915-120248778
Persistent URL:http://resolver.caltech.edu/CaltechAUTHORS:20170915-120248778
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:81489
Collection:CaltechAUTHORS
Deposited By: Tony Diaz
Deposited On:15 Sep 2017 20:20
Last Modified:15 Sep 2017 20:20

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