TY - JOUR
T1 - Price elasticity reconsidered
T2 - Panel estimation of an agricultural water demand function
AU - Schoengold, Karina
AU - Sunding, David L.
AU - Moreno, Georgina
PY - 2006/9
Y1 - 2006/9
N2 - Using panel data from a period of water rate reform, this paper estimates the price elasticity of irrigation water demand. Price elasticity is decomposed into the direct effect of water management and the indirect effect of water price on choice of output and irrigation technology. The model is estimated using an instrumental variables strategy to account for the endogeneity of technology and output choices in the water demand equation. Estimation results indicate that the price elasticity of agricultural water demand is -0.79, which is greater than that found in previous studies.
AB - Using panel data from a period of water rate reform, this paper estimates the price elasticity of irrigation water demand. Price elasticity is decomposed into the direct effect of water management and the indirect effect of water price on choice of output and irrigation technology. The model is estimated using an instrumental variables strategy to account for the endogeneity of technology and output choices in the water demand equation. Estimation results indicate that the price elasticity of agricultural water demand is -0.79, which is greater than that found in previous studies.
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U2 - 10.1029/2005WR004096
DO - 10.1029/2005WR004096
M3 - Article
AN - SCOPUS:33750324582
SN - 0043-1397
VL - 42
JO - Water Resources Research
JF - Water Resources Research
IS - 9
ER -