Substitution and price elasticity estimates using inter-country pooled data in a translog cost model

Pooled data across several developing countries and the U. S. were used to estimate long-run substitution and price elasticities in a translog framework for the paper, iron and steel, and aggregate manufacturing industries. While the quality of the estimates varies across the several industry-specif...

Full description

Saved in:
Bibliographic Details
Published in:Energy economics 2006-11, Vol.28 (5), p.706-719
Main Authors: Roy, Joyashree, Sanstad, Alan H., Sathaye, Jayant A., Khaddaria, Raman
Format: Article
Language:English
Subjects:
Brazil
Costs
Developing countries
Elasticity
Energy economics
Estimates
Fuel and input
Fuels
India
Industry
Integrated Assessment Model
LDCs
Price elasticity
Prices
South Korea
Studies
Translog
U.S.A
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Pooled data across several developing countries and the U. S. were used to estimate long-run substitution and price elasticities in a translog framework for the paper, iron and steel, and aggregate manufacturing industries. While the quality of the estimates varies across the several industry-specific models, the results suggest higher values for these elasticities than appear commonly used in integrated assessment models. Estimates of own-price elasticities of energy range from − 0.80 to − 1.76 and are comparable to estimates from previous econometric studies in the context of developed countries (− 0.77 to − 0.87). Substitution elasticities show wider variation across countries and industries. For energy and capital they range from − 1.96 to 9.80, for labor and energy from 2.61 to 7.11, and for energy and material from − 0.26 to 2.07.
ISSN:0140-9883
1873-6181
DOI:10.1016/j.eneco.2006.05.008