Scandinavian Working Papers in Economics

Working Papers,
Lund University, Department of Economics

No 2000:13: Household Choice of Drinking Water Source in the Philippines

Therese Hindman Persson ()
Additional contact information
Therese Hindman Persson: ECON Analysis, Postal: Artillerigatan 42, 5 tr, SE-114 45 Stockholm, Sweden

Abstract: This paper analyses household choice of drinking water source for 769 rural households in the Metro Cebu Area, Philippines. In particular, the effects of input prices, tastes and household size on the choice probabilities are analyzed. For the empirical analysis, a discrete choice approach consistent with utility maximization is employed. The findings indicate that the time cost is an important determinant of household choice of drinking water source and, surprisingly, that tastes, proxied by income, has ambiguous effects on household choice. The present study is contrasted to an earlier study in which inconsistency with utility maximization cannot be ruled out

Keywords: Water Demand; Discrete Choice; Utility Maximisation; Conditional Logit; Nested Logit

JEL-codes: C25; D12; Q25

21 pages, First version: November 1, 2000. Revised: January 26, 2000. Earlier revisions: January 26, 2001.

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