Work detail

Price Elasticity of Water Demand: A Meta-Analysis

Author: Bc. Richard Thoma
Year: 2013 - summer
Leaders: doc. 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-e ects 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.

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