ELECTRICITY PRICES AND ELECTIONS IN QUEBEC

This study examines the role of elections in determining electricity p rices in Quebec. The legislation governing Hydro-Quebec is used to dev elop a model incorporating its stated policy objectives and the partis an interests of the governing party. Bayesian methods are used to inco rporate available non-sample information to test the restrictions impo sed by the strategic pricing hypothesis. The data provide broad but li mited support for the null. Electricity prices appear to be consistent with the behaviour of governments who wish to manipulate electricity prices for partisan gain and who also wish to avoid detection.