- 1、本文档共16页,可阅读全部内容。
- 2、原创力文档(book118)网站文档一经付费(服务费),不意味着购买了该文档的版权,仅供个人/单位学习、研究之用,不得用于商业用途,未经授权,严禁复制、发行、汇编、翻译或者网络传播等,侵权必究。
- 3、本站所有内容均由合作方或网友上传,本站不对文档的完整性、权威性及其观点立场正确性做任何保证或承诺!文档内容仅供研究参考,付费前请自行鉴别。如您付费,意味着您自己接受本站规则且自行承担风险,本站不退款、不进行额外附加服务;查看《如何避免下载的几个坑》。如果您已付费下载过本站文档,您可以点击 这里二次下载。
- 4、如文档侵犯商业秘密、侵犯著作权、侵犯人身权等,请点击“版权申诉”(推荐),也可以打举报电话:400-050-0827(电话支持时间:9:00-18:30)。
查看更多
Empirical Example- Returns to Scale in Electricity supply
Empirical Example: Returns to Scale in Electricity
Supply
Walter Sosa-Escudero
Econ 507. Econometric Analysis. Spring 2009
February 10, 2009
Walter Sosa-Escudero Empirical Example: Returns to Scale in Electricity Supply
Classic paper: Nerlove (1963), analyzed in detail in Hayashi
(2000).
Problem: returns to scale in a regulated industry (electric
power supply). See Hayashi for a discussion of the underlying
institutional framework.
Data: 145 in 44 states.
Variables: total costs, factor prices (wage rate, price of fuel,
and the rental price of capital), and output.
Walter Sosa-Escudero Empirical Example: Returns to Scale in Electricity Supply
Economic problem: cannot just look at costs vs. output.
Factor prices interact with output.
Cobb-Douglas technology:
Qi = A1xα11i x
α2
2i x
α4
3i
Qi: output
xj : factors
Ai: ‘firm heterogeneity’: unobservable differences in
production efficiency.
r ≡ α1 + α2 + α3 measures degree of returns to scale.
Walter Sosa-Escudero Empirical Example: Returns to Scale in Electricity Supply
Cost function:
TCi = r (αα11 α
α2
2 α
α3
3 )
?1/rQ1/ri p
α1/r
1i p
α2/r
2i p
α3/r
3i
Taking logs:
lnTC1 = μi +
1
r
lnQi +
α1
r
ln p1i +
α2
r
ln p2i +
α3
r
ln p3i,
μi ≡ ln [r (αα11 αα22 αα33 )]
The linear econometric model is:
lnTC1 = β1 + β2 lnQi + β3 ln p1i + β4 ln p2i + β5 ln p3i + i
with
β2 = 1/r, β3 = α1/r, β4 = α2/r, β5 = α4/r.
μ ≡ E(μi), i ≡ μi ? μ, so E(i) = 0.
Walter Sosa-Escudero Empirical Example: Returns to Scale in Electricity Supply
Role of classical assumptions
Linearity: is a consequence of the Cobb-Douglas tecnology (in
logs).
Strict exogeneity: factor prices are given to the firm
independently of efficiency. Ouput: if prices are set
independently of efficiency, Ok. If prices are set to cover
costs: unobserved efficiency is related to ouput.
No multicollinearity: Ok
Firm spillovers might harm the no-serial correlation
assumption.
Heteroskedasticity very likely to be present. Careful.
Walter Sosa-Escudero Empirical Example: Returns to Sca
您可能关注的文档
- Creating kinks from particles.pdf
- Creating quanta with annihilation operator.pdf
- Crismas card.ppt
- Cross-Layer Packetization and Retransmission Strategies for Delay-Sensitive Wireless Multim.pdf
- Crop Insurance Reconsidered.pdf
- Crystal Fire.pdf
- Crystal growth and in-plane optical properties of Tl$_2$Ba$_2$Ca$_{n-1}$Cu$_n$O$_x$ (n=1,2,.pdf
- crysbind_CG.pdf
- CS35L00-CNZR,CS35L00-CNZR,CS35L00-CNZ, 规格书,Datasheet 资料.pdf
- CSC2322 兼容pt2322.pdf
- 【精品】人教版小学语文六年级下册期末考卷含参考答案.docx
- 【精品】人教版小学数学五年级下册期中试卷含参考答案.docx
- 【精品】人教版小学数学五年级下册期末试卷含参考答案.docx
- 【精品】北师大版小学英语五年级下册期末试卷含参考答案.docx
- 【精品】北师大版小学科学一年级上册模拟考卷含参考答案.docx
- 【精品】北师大版小学科学一年级下册期末考卷含参考答案.docx
- 【精品】北师大版小学科学三年级下册期末试卷含参考答案.docx
- 【精品】北师大版小学英语六年级上册模拟考卷含参考答案.docx
- 【精品】人教版小学数学五年级下册期末考卷含参考答案.docx
- 【精品】人教版小学数学五年级上册期末考卷含参考答案.docx
文档评论(0)