Reconsidering the Economics of Demand Analysis with Kinked Budget Constraints
指出离散连续选择框架在描述拐点预算约束下消费者偏好时存在问题，并提出一种基于偏好的替代方法来估计价格变化下的消费者反应，发现家庭对价格可能比以往认为的更敏感。
This paper has two objectives. First, we identify a problem with the ability of the discrete-continuous choice (DCC) framework and conditional demand functions to fully describe consumer preferences in the presence of kinked budget constraints. Second, we propose and illustrate an alternative, preference based, method for estimating consumer responses to price changes under these conditions. Our preference based approach yields price elasticities on the order of 0.4 and a "utilities expenditure" elasticity of near unity. This research highlights the possibility that households may be more sensitive to price schedules than previously thought. It is recognizes commitments to commodities such as pools or outdoor landscaping influence how water consumption responds to price changes as part of the long run adjustments.