ABSTRACT:Understanding the behavior of different time‐series components of water consumption data is essential for a more effective analysis of economic incentive effects of alternative policy measures and also closer integration of water supply and demand management. Additive and multiplicative models are used to analyze the trend (T), cyclical (C), seasonal (S) and irregular (I) components. The stepwise regression method was applied to 187 data points (January 1960 to July 1975), each representing average daily water consumption within the service area of the Honolulu Board of Water Supply. Although statistically similar results (R20.95 and 0.96 and respective corresponding F‐ratios 277 and 307) might suggest little difference in model performances, closer analysis of the results point to important multiplicative effects which should be taken into account in both short‐run and long‐run a
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