The free electricity allowance and the Engel curve
Citation:
Conniffe, Denis. 'The free electricity allowance and the Engel curve'. - Economic & Social Review, Vol. 31, No. 2, April, 2000, pp. 173-186, Dublin: Economic & Social Research InstituteDownload Item:
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Abstract:
In 1994 over 18 per cent of Irish households possessed a free electricity allowance. This
creates complications in using the 1994-95 Household Budget Survey to estimate an Engel curve for electricity expenditure. Ignoring the allowances leads to biased estimates of elasticities and distorts comparisons between sectors. Examining the sub-populations with and without allowances results in conclusions leading to a substantial revision of the income elasticity for household electricity
expenditure and to deductions about possible current and past welfare losses inherent in the free electricity scheme.
Author: Conniffe, Denis
Publisher:
Economic & Social StudiesType of material:
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0012-9984Licences: