Perth-s-Water-Demand-Estimation-Using-Instrumental-Variables

This repository contains R code for estimating water demand in Perth, Australia, using an instrumental variables (IV) estimation approach. The IV method addresses potential endogeneity issues in the model, providing more reliable and unbiased estimates of water demand elasticities. Key Features: • Implementation of instrumental variables estimation to account for endogeneity. • Detailed analysis of water demand in Perth, including the calculation of price and income elasticities. • Comprehensive examples and usage instructions for applying the IV approach. • Functions and scripts designed for easy integration into water demand studies and econometric analyses. This repository is intended for researchers, economists, and analysts focusing on water resource management and demand estimation. It provides robust tools and methodologies for accurately estimating water demand, considering the unique characteristics and challenges of the Perth water market.