2022-01-24T10:22:17Zhttps://repository.dl.itc.u-tokyo.ac.jp/oaioai:repository.dl.itc.u-tokyo.ac.jp:000422302021-03-02T02:19:23ZA Discrete/Continuous Choice Model on the Nonconvex Budget SetMiyawaki, Koji97186Omori, Yasuhiro97187Hibiki, Akira97188Discrete/Continuous choice approachNonconvex budget setBayesian analysisResidential gas demandHermite-Hadamard integral inequalityJEL classification: C11, C24, D12application/pdfThe decreasing block rate pricing is a nonlinear price system often used for public utility services. The residential gas services in Japan and the United Kingdom are provided under this price schedule. The discrete/continuous choice approach is used to analyze the demand under decreasing block rate pricing. However, the nonlinearity problem, which has not been examined in previous studies, arises because a consumer's budget set (a set of affordable consumption amounts) is nonconvex and, hence, the resulting model includes highly nonlinear functions. To address this problem, we propose a feasible, efficient method of demand on the nonconvex budget. The advantages of our method are as follows: (i) the construction of an efficient Markov chain Monte Carlo algorithm with an efficient blanket based on the Hermite-Hadamard integral inequality and the power-mean inequality, (ii) the explicit consideration of the (highly nonlinear) separability condition, which often makes numerical likelihood maximization difficult, and (iii) the introduction of normal disturbance into the discrete/continuous choice model on the nonconvex budget set. The proposed method is applied to estimate the Japanese residential gas demand function and evaluate the effect of price schedule changes as a policy experiment.本文フィルはリンク先を参照のことtechnical report日本経済国際共同センター2013-03Discussion paper series. CIRJE-FCIRJE-F-881AA11450569enghttp://www.cirje.e.u-tokyo.ac.jp/research/dp/2013/2013cf881ab.htmlmetadata only access