Price Elasticity of Water Demand: A Meta-Analysis
Author: | Bc. Richard Thoma |
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Year: | 2013 - summer |
Leaders: | prof. PhDr. Tomáš Havránek Ph.D. |
Consultants: | |
Work type: | Bachelors |
Language: | Czech |
Pages: | 46 |
Awards and prizes: | |
Link: | |
Abstract: | Meta-analysis is a statistical method that allows us to combine results of em- pirical research. A theoretical summary helped to select appropriate model for the empirical part of this thesis - a meta-analysis focused on the price elas- ticity of residential water demand. A mixed-eects multilevel model, which corrects for selection bias, heteroskedasticity and within-study correlation, was employed. Publication bias was found only for subsample excluding data from the western part of the United States. Heckman meta-regression shows that the true price elasticity of water demand is -0,246. Finally variation in results across studies is explained. Using average price instead of margi- nal, the discrete-continuous choice model and data from the western part of the United States for water demand modelling will result in higher values of estimated elasticity. |