English, Article, Journal or magazine article edition: Seeking theta's Desperately: Estimating the Distribution of Consumers Under Increasing Block Rates Pedro Delicado; Fidel Castro; Jose M. Da Rocha

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Bookmark: http://trove.nla.gov.au/version/153347
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Seeking theta's Desperately: Estimating the Distribution of Consumers Under Increasing Block Rates
Author
  • Pedro Delicado
  • Fidel Castro
  • Jose M. Da Rocha
Physical Description
  • preprint
Notes
  • This paper shows that the distribution of observed consumption is not a good proxy for the distribution of heterogeneous consumers when the current tariff is an increasing block tariff. We use a two step method to recover the "true" distribution of consumers. First, we estimate the demand function induced by the current tariff. Second, using the demand system, we specify the distribution of consumers as a function of observed consumption to recover the true distribution. Finally, we design a new two-part tariff which allows us to evaluate the equity of the existence of an increasing block tariff.
  • Heterogeneous demand, nonlinear pricing
  • RePEc:upf:upfgen:250
Language
  • English
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