Abstract

ABSTRACT:

We present the first study that examines the effects of publication selection in the literature estimating the income elasticity of water demand. Paradoxically, more affected by publication selection are the otherwise preferable estimates that control for endogeneity. Attempting to correct simultaneously for publication and endogeneity biases, we find that the mean underlying elasticity is approximately 0.15 or less. The result is robust to controlling for more than 30 characteristics of the estimates and accounting for model uncertainty. The differences in the reported estimates are systematically driven by differences in the tariff structure, regional coverage, data granularity, and control for temperature.

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Additional Information

ISSN
1543-8325
Print ISSN
0023-7639
Pages
pp. 259-283
Launched on MUSE
2018-04-17
Open Access
No
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