Paper #250

Título:

Seeking theta's desperately: Estimating the distribution of consumers under increasing block rates

Autores:

Pedro Delicado, Fidel Castro y Jose M. Da Rocha

Data:

Diciembre 1997

Resumen:

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.

Palabras clave:

Heterogeneous demand, nonlinear pricing

Códigos JEL:

L15, L95

Área de investigación:

Microeconomía

Publicado en:

Journal of Regulatory Economics, 22 (1), pp. 29-58, 2002
Con el título:
Desperately seeking theta's: Estimating the distribution of consumers under increasing block rates

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