A substantial body of literature in economics has focused on appropriate pricing under conditions in which demand varies through time and the product supplied cannot be stored. However, only limited attention has been paid to modeling or estimating consumer demand under these conditions. This paper deals with these issues in the context of the demand for electricity. A periodic cubic spline formulation is presented which bridges the gap between econometric and pure time series methods of estimating the path of demand through time.
ASJC Scopus subject areas
- Economics and Econometrics