Multifactor Productivity Growth: Empirical Results for a Major United States Utility

Jasmin Ansar

Journal of Regulatory Economics, 1990, vol. 2, issue 3, 62 pages

Abstract: This paper analyzes an econometric model of productivity growth. The paper presents empirical estimates of productivity growth at a major United States utility, Pacific Gas & Electric Company (PG&E), for the period 1976-88 and a forecast of the company's productivity growth for 1990. The proposed econometric model specification incorporates two novel features: weather-related variables that influence costs and a split-time trend, which captures the effects of changes in PG&E's operating environment. The empirical results provide strong support for the model specification. Copyright 1990 by Kluwer Academic Publishers

Date: 1990
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