Publication Title
Agricultural and Resource Economics Review
Document Type
Article
Abstract/Description
We utilize a Generalized Exact Affine Stone Index system to evaluate the structure of residential water demand that recognizes demand interrelationship between residential and bottled water in the United States, allowing for precommitted consumption. Further, we address expenditure and price endogeneity by accounting for the supply side of the price determination mechanism. A significant substitutability relationship between residential and bottled water is found, while substantial precommitments are established in both residential and bottled water consumption. Residential demand becomes price-elastic once the precommitted level is reached. Finally, ignoring substitutability, precommitments, or endogeneity distorts the demand structure, resulting in erroneous policy implications.
Department
Agricultural Sciences and Natural Resources
First Page
68
Last Page
85
DOI
10.1017/age.2021.18
Volume
51
ISSN
2372-2614
Date
9-7-2021
Citation Information
Rafael, Bakhtavoryan and Hovhannisyan, Vardges, "Quantifying the Structure of Residential Water Demand in the United States: a Generalized Exact Affine Stone Index Demand Framework" (2021). Faculty Publications. 5.
https://digitalcommons.tamuc.edu/ag-science-faculty-publications/5
