Functional form and aggregate energy demand elasticities: a nonparametric panel approach for 17 OECD countries
2013 (English)In: Energy Economics, ISSN 0140-9883, E-ISSN 1873-6181, Vol. 36, 19-27 p.Article in journal (Refereed) Published
This paper studies whether the commonly used linear parametric model for estimating aggregate energy demand is the correct functional specification for the data generating process. Parametric and nonparametric econometric approaches to analyzing aggregate energy demand data for 17 OECD countries are used. The results from the nonparametric correct model specification test for the parametric model rejects the linear, log-linear and translog specifications. The nonparametric results indicate that the effect of the income variable is nonlinear, while that of the price variable is linear but not constant. The nonparametric estimates for the price variable is relatively low, approximately -0.2.
Place, publisher, year, edition, pages
2013. Vol. 36, 19-27 p.
Cointegration, Log-linear, Panel data and specification test
Economics and Business
IdentifiersURN: urn:nbn:se:umu:diva-68914DOI: 10.1016/j.eneco.2012.11.026ISI: 000316240100002OAI: oai:DiVA.org:umu-68914DiVA: diva2:619789