Hello every one,
I really need your help.
My dataset is a panel (350 individuals, 15 periods). The variable to be explained is energy consumption, the explanatory variables include households characteristics, income, equipment, etc. and the price. However, given my price schedule, price varies with the quantity of energy consumed, by block, leading to a endogeneity problem. The price is homogenous for all the studied population but it has changed twice during the studied period due to a tariff reform.
Following the literature, I can solve this issue by using a DCC model: for consumers, each block of price is a discrete choice, which associated with different marginal price and budget set, and within each discrete choice, consumers then decide usage on a continuous interval.
DCC models can't be used to estimate price sensitivity in the case of homogenous pricing for a studied population, which is my case, but since my price has changed during period 5 and 8, I can estimate households's sensitivity to that price increase.
I am desperately asking for a command on STATA (I have also asked for R package) to estimate a DCC model with panel data.
If someone can help me, I would be very gratefull...
Thanks,
Mareen
I really need your help.
My dataset is a panel (350 individuals, 15 periods). The variable to be explained is energy consumption, the explanatory variables include households characteristics, income, equipment, etc. and the price. However, given my price schedule, price varies with the quantity of energy consumed, by block, leading to a endogeneity problem. The price is homogenous for all the studied population but it has changed twice during the studied period due to a tariff reform.
Following the literature, I can solve this issue by using a DCC model: for consumers, each block of price is a discrete choice, which associated with different marginal price and budget set, and within each discrete choice, consumers then decide usage on a continuous interval.
DCC models can't be used to estimate price sensitivity in the case of homogenous pricing for a studied population, which is my case, but since my price has changed during period 5 and 8, I can estimate households's sensitivity to that price increase.
I am desperately asking for a command on STATA (I have also asked for R package) to estimate a DCC model with panel data.
If someone can help me, I would be very gratefull...
Thanks,
Mareen
Comment