Abstract
AbstractThis paper investigates nonpayment behavior in Guatemala. Determinants of nonpayment behavior are identified through zero‐inflated negative binomial regression models in order to take into account particular distributional characteristics of the amount of outstanding payments. Findings indicate that nonpayment behavior is a demonstration of consumer dissatisfaction with current water services. The amount of outstanding bill payments also responds to system unreliability. Results also suggest that nonpayment behaviors are more prominent in community‐managed systems than in municipal systems. No evidence was found on a potential relationship between nonpayment behavior and household income. Policy implications are discussed.
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