The dependent variable in the demand equation is the monthly household consumption of water in cubic meter. APRICE and MPRICE are in pesos per cubic meter. Other variables used are monthly household income in thousand pesos (INCOME); household size (HHSIZE); distance from source in meter (DISTANCE);dummy variables to indicate source of water, i.e., MWSS2 = 1 if MWSS and 0 otherwise,HOSEF = 1 if by hose at fixed charge and 0 otherwise, PKUPMS = 1 if picked from households with MWSS connection and 0 otherwise, PKUPDW = 1 if picked up from households using tubewells and 0 otherwise, PLFAUCET = 1 if picked up from public faucet and 0 otherwise; dummy variables to reflect quality of service, i.e., TRBDY = 1 ifwithout particles and 0 otherwise, TASTE = 1 if water has good taste and 0 otherwise; and SMELL = 1 if water odorless and 0 otherwise; dummy variables to denote tenure of residence, i.e., RENT = 1 if renting house and lot and 0 otherwise, SQOWPV = 1 if squatting on private lot but owning house and 0 otherwise, SQRTPV = 1 if squatting on private land and renting the house and 0 otherwise, SQOWPL = 1 if squatting on public land and owning the house and 0 otherwise, SQRTPL = 1 if squatting on public land and renting the house and 0 otherwise; a dummy variable to represent households with booster pumps (BOOSTER) that is 1 and 0 otherwise; a dummy variable to denote MWSS sewer connection (SEWER) that is 1 and 0 otherwise; number of supply hours (HOURS); and respondent's number of years schooling (SCHOOL).
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