Disentangling Temporal Patterns in Elasticities: A Functional Coefficient Panel Analysis of Electricity Demand

Yoosoon Chang (), Yongok Choi, Chang Sik Kim, Joon Park and J. Miller

No 1320, Working Papers from Department of Economics, University of Missouri

Abstract: We introduce a panel model with a nonparametric functional coefficient of multiple arguments. The coefficient is a function both of time, allowing temporal changes in an otherwise linear model, and of the regressor itself, allowing nonlinearity. In contrast to a time series model, the effects of the two arguments can be identified using a panel model. We apply the model to the relationship between real GDP and electricity consumption. Our results suggest that the corresponding elasticities have decreased over time in developed countries, but that this decrease cannot be entirely explained by changes in GDP itself or by sectoral shifts.

Keywords: semiparametric panel regression; partially linear functional coefficient model; elasticity of electricity demand (search for similar items in EconPapers)
JEL-codes: C33 C51 C53 Q41 (search for similar items in EconPapers)
Pages: 40 pgs.
Date: 2013-11-08
New Economics Papers: this item is included in nep-ecm and nep-ene
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Citations: View citations in EconPapers (3)

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Journal Article: Disentangling temporal patterns in elasticities: A functional coefficient panel analysis of electricity demand (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:umc:wpaper:1320

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