scholarly journals Exploring Water Consumption in Dhaka City Using Instrumental Variables Regression Approaches

2020 ◽  
Vol 7 (4) ◽  
pp. 1255-1275
Author(s):  
Muhammad Shahadat Hossain Siddiquee ◽  
Raihan Ahamed
Keyword(s):  
Water Consumption ◽  
Instrumental Variable ◽  
Income Elasticity ◽  
Household Survey ◽  
Spatial Inequality ◽  
Dhaka City ◽  
Income Elasticities ◽  
Smart Water ◽  
Instrumental Variable Regression ◽  
Tariff Structure

Abstract This paper explores water consumption in Dhaka city for better understanding of its usage, and considers the implications of findings from distributive rationale. Using 459 household survey data collected by BRAC Institute of Governance and Development (BIGD), this study estimates income elasticities of water consumption after controlling the effects of other covariates including wealth-proxies, location, household size, water bill and spatial zones using the instrumental variable regression (IVREG) and instrumental variable quantile regression (IVQREG) approaches. The latter has an additive advantage over the former as the IVQREG provides a more accurate picture of the relationship of water consumption with the income throughout the entire water consumption distribution. Using the fixed pay variable as instrument, findings reveal the strong evidence that income is endogenous. The IVQREG results show that income elasticities are heterogeneous and vary significantly across the water quantiles, implying inequality in water consumption. It also provides strong systematic evidence as income elasticity of water consumption decreases with the increase in percentile. Significant spatial inequality in water consumption from IVREG approach disappears as we use IVQREG. This also strongly supports the systematic evidence obtained. Therefore, it is imperative to introduce different tariff structures among different water consumer groups for bringing equity in water consumption and revenue generation. However, Dhaka Water Supply & Sewerage Authority (DWASA) must ensure smart water meter before implementing such tariff structure as we face severe challenges while measuring residential water consumption.

The Income Elasticity of Gross Sports Betting Revenues in Nevada: Short-Run and Long-Run Estimates

2021 ◽  
pp. 152700252110369
Author(s):  
Ege Can ◽  
Mark W. Nichols
Keyword(s):  
Income Elasticity ◽  
Similar Rate ◽  
Sports Betting ◽  
Tax Base ◽  
Income Elasticities ◽  
Long Run ◽  
Sports Gambling ◽  
The Supreme Court ◽  
Short Run ◽  
State Income

In May 2018, the Supreme Court overturned the Professional and Amateur Sports Protection Act, thereby allowing all states to offer sports betting. Prior to this, Nevada was the only state with unrestricted sports betting. Using sports betting data from Nevada, we estimate long-run and short-run income elasticities to determine the growth and volatility of sports betting as a tax base. Sports gambling grows at a similar rate as state income and is stable and insensitive to short-run shocks to income. However, the amount of money kept by casinos, and hence the state, is small compared to other traditional tax bases.

Income Elasticities for State Tax Revenues: Techniques of Estimation and Their Usefulness for Forecasting

1973 ◽  
Vol 1 (4) ◽  
pp. 409-425 ◽  
Author(s):  
Robert E. Berney ◽  
Bernard H. Frerichs
Keyword(s):  
Time Series ◽  
Regression Analysis ◽  
Income Elasticity ◽  
Income Elasticities ◽  
Tax Revenues ◽  
State Tax ◽  
The Stability ◽  
Revenue Estimation ◽  
Theoretical Foundations ◽  
Over Time

The concept of income elasticity of tax revenues has been used in numerous studies with little concern about its theoretical foundations. Income elasticities have also been used for revenue estimation with limited concern about stability over time or about the accuracy of the forecasts. This paper explores the development of the tax elasticity measure and, using revenue data from Washington, compares year-to-year elasticity measures with those established by regression analysis. The length of the time series is varied to check on the stability of the coefficients. Finally, the elasticities are used to predict revenues for three years to check on their accuracy for revenue estimation.

Income elasticity of overnight stays over seven decades

2018 ◽  
Vol 24 (8) ◽  
pp. 1015-1028 ◽  
Author(s):  
Martin Falk ◽  
Xiang Lin
Keyword(s):  
Purchasing Power Parity ◽  
Travel Demand ◽  
Income Elasticity ◽  
Power Parity ◽  
Income Elasticities ◽  
Long Run ◽  
The Stability ◽  
Overnight Stays ◽  
New Evidence ◽  
Specific Country

This article provides new evidence on the stability of the long-run income elasticity of tourism and travel demand by use of the recently developed smooth time-varying cointegration regression model. The estimations control for relative purchasing power parity of the source country and make use of a specific country dataset where domestic and foreign overnight stays are available over a longer period of time (Switzerland, 1934–2015). Results show that the income elasticity of foreign overnight stays peaks at approximately two in the early 1960s, drops to around one in the early 1980s and from then on remains stable until the end of the sample. Domestic income elasticity reaches its highest levels in the 1930s, then steadily falls towards one in the mid-1960s, and therefrom remains stable until 2015. Different phases in the tourism area life cycle might be a major explanatory factor for variation in income elasticities over time.

scholarly journals Intergenerational Income Elasticity in Turkey

2016 ◽  
Vol 5 (3) ◽  
pp. 30-37
Author(s):  
Murat Anıl Mercan ◽  
Hande Barlin
Keyword(s):  
Instrumental Variable ◽  
Income Elasticity ◽  
Developed Countries ◽  
Social Scientists ◽  
Income Status ◽  
Nationally Representative ◽  
Different Characteristics ◽  
Relationship Of ◽  
The Relationship ◽  
Longitudinal Dataset

Social scientists have been intrigued by the relationship between generations based on different characteristics. Economists, has been especially interested in measuring intergenerational income elasticity, which looks at the relationship of parents and that of their children when they become adults and gives clue on trends of income inequality. Most of the literature concentrates on the experiences of developed countries and measurement issues. Nevertheless, new studies concerning intergenerational income elasticity is being undertaken in developing countries as the data become increasingly available for these countries. In this vein, there is only one previous study that investigates intergenerational income elasticity for Turkey. Mercan (2012) finds that intergenerational income elasticity is around 0.1 in Turkey, which depicts Turkey as a highly mobile country meaning that children of poor parents have a higher likelihood to have a better income status. However, his study does not depend on a longitudinal dataset, which might make Mercan’s (2012) estimate biased. Following Solon (1992) in using OLS for lower bound and instrumental variable (IV) for upper bound, this study puts forth a new estimate, which relies on a nationally representative and longitudinal dataset for Turkey. The study's estimate for intergenerational income elasticity varies between 0.3 and 0.6, which is much higher than the result of Mercan (2012), indicating that Turkey is a less mobile country than previously foreseen.

scholarly journals Genetic instrumental variable regression: Explaining socioeconomic and health outcomes in nonexperimental data

2018 ◽  
Vol 115 (22) ◽  
pp. E4970-E4979 ◽  
Author(s):  
Thomas A. DiPrete ◽  
Casper A. P. Burik ◽  
Philipp D. Koellinger
Keyword(s):  
Instrumental Variable ◽  
Fixed Effects ◽  
Genome Wide Association Study ◽  
Body Height ◽  
Outcome Variable ◽  
Endogeneity Bias ◽  
Multiple Indicators ◽  
Instrumental Variable Regression ◽  
Genome Wide ◽  
Polygenic Scores

Identifying causal effects in nonexperimental data is an enduring challenge. One proposed solution that recently gained popularity is the idea to use genes as instrumental variables [i.e., Mendelian randomization (MR)]. However, this approach is problematic because many variables of interest are genetically correlated, which implies the possibility that many genes could affect both the exposure and the outcome directly or via unobserved confounding factors. Thus, pleiotropic effects of genes are themselves a source of bias in nonexperimental data that would also undermine the ability of MR to correct for endogeneity bias from nongenetic sources. Here, we propose an alternative approach, genetic instrumental variable (GIV) regression, that provides estimates for the effect of an exposure on an outcome in the presence of pleiotropy. As a valuable byproduct, GIV regression also provides accurate estimates of the chip heritability of the outcome variable. GIV regression uses polygenic scores (PGSs) for the outcome of interest which can be constructed from genome-wide association study (GWAS) results. By splitting the GWAS sample for the outcome into nonoverlapping subsamples, we obtain multiple indicators of the outcome PGSs that can be used as instruments for each other and, in combination with other methods such as sibling fixed effects, can address endogeneity bias from both pleiotropy and the environment. In two empirical applications, we demonstrate that our approach produces reasonable estimates of the chip heritability of educational attainment (EA) and show that standard regression and MR provide upwardly biased estimates of the effect of body height on EA.

Cleaner production to drive water efficiency

2010 ◽  
Vol 10 (4) ◽  
pp. 541-545
Author(s):  
Vanessa Lenihan
Keyword(s):  
Heavy Metals ◽  
Water Consumption ◽  
Industrial Ecology ◽  
Holistic Approach ◽  
Total Dissolved Solids ◽  
Cleaner Production ◽  
Water Efficiency ◽  
Production Program ◽  
Smart Water ◽  
Project Outcomes

South East Water Limited (SEWL) commenced the cleaner production program in 2006. The program has allowed SEWL to engage with industrial customers to reduce Total Dissolved Solids (TDS), colour and heavy metals. It has also had the benefit of reducing water consumption. The holistic approach to water saving projects has allowed a better understanding of the actual pay back on projects. In addition to this work, the Smart Water Fund commissioned a review of industrial ecology opportunities for Melbourne. This project was completed in 2008. The paper outlines the project outcomes and how it has been embedded in the cleaner production program at South East Water.

scholarly journals Retrospectives: Who Invented Instrumental Variable Regression?

2003 ◽  
Vol 17 (3) ◽  
pp. 177-194 ◽  
Author(s):  
James H Stock ◽  
Francesco Trebbi
Keyword(s):  
Instrumental Variables ◽  
Vegetable Oils ◽  
Instrumental Variable ◽  
Historical Evidence ◽  
Iv Estimation ◽  
Instrumental Variable Regression ◽  
Sewall Wright ◽  
Father And Son

The instrumental variables estimator first appeared explicitly in Appendix B of The Tariff on Animal and Vegetable Oils by Philip G. Wright (1928). It has been suggested that this appendix was written by Philip's son Sewall Wright, then already an important genetic statistician. To find out who wrote Appendix B, we use stylometric statistics to compare it to other texts known to have been written solely by the father and son. The sharp results are consistent with contextual and historical evidence on the authorship of Appendix B and on the origination of the idea of IV estimation.

scholarly journals Early-life Medicaid Coverage and Intergenerational Economic Mobility

2018 ◽  
Vol 59 (2) ◽  
pp. 300-315 ◽  
Author(s):  
Rourke L. O’Brien ◽  
Cassandra L. Robertson
Keyword(s):  
Low Income ◽  
Early Life ◽  
Instrumental Variable ◽  
Regression Models ◽  
Causal Effect ◽  
Economic Mobility ◽  
Medicaid Coverage ◽  
Instrumental Variable Regression ◽  
Normative Evaluation ◽  
Medicaid Eligibility

New data reveal significant variation in economic mobility outcomes across U.S. localities. This suggests that social structures, institutions, and public policies—particularly those that influence critical early-life environments—play an important role in shaping mobility processes. Using new county-level estimates of intergenerational economic mobility for children born between 1980 and 1986, we exploit the uneven expansions of Medicaid eligibility across states to isolate the causal effect of this specific policy change on mobility outcomes. Instrumental-variable regression models reveal that increasing the proportion of low-income pregnant women eligible for Medicaid improved the mobility outcomes of their children in adulthood. We find no evidence that Medicaid coverage in later childhood years influences mobility outcomes. This study has implications for the normative evaluation of this policy intervention as well as our understanding of mobility processes in an era of rising inequality.

scholarly journals Income elasticity of demand within individual consumer groups and the level of income elasticity of the entire market demand 

2012 ◽  
Vol 52 (No. 9) ◽  
pp. 412-417
Author(s):  
P. Syrovátka
Keyword(s):  
Consumer Behaviour ◽  
Income Elasticity ◽  
Meat Products ◽  
Market Demand ◽  
Demand Functions ◽  
Elasticity Of Demand ◽  
Income Elasticities ◽  
Aggregation Equation ◽  
Application Potential ◽  
Income Elasticity Of Demand

The paper is focused on the derivation of the mathematical relationship among the income-elasticity level of the entire market demand and the income-elasticity values of the demand functions of the consumers’ groups buying on the defined market. The determination of the mathematical term was based on the linearity of the relevant demand functions. Under the linearity assumption, the income elasticity coefficient of the entire market demand equals the weighted sum of the income-demand elasticities of the differentiated consumer groups buying on the given market. The weights in the aggregation formula are defined as the related demand shares, i.e. as the proportions of the groups’ demands to the entire market demand. The derived aggregation equation is quite held if no demand interactions (e.g. the snob or fashion effect) are recorded among differentiated consumers’ groups. The derived formula was examined by using empirical data about the consumer behaviour of Czech households in the market of meat and meat products (Czech Statistical Office). However, the application potential of the achieved term for the income-elasticity aggregations is much broader within the consumer-behaviour analysis. In addition to the subject aggregations of the demand functions, we can also apply the derived formula for the analysis and estimations of the income elasticities within the demand-object aggregations, i.e. the multistage analysis of the income elasticity of consumer demand. Another possibility of the use of the aggregation equation is for the evaluations and estimations of the income elasticity of the region-demand functions in relation to the subregions’ demands or reversely.

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