AER (version 1.2-14)

Electricity1970: Cost Function of Electricity Producers 1970

Description

Cross-section data, at the firm level, on electric power generation.

Usage

data("Electricity1970")

Format

A data frame containing 158 cross-section observations on 9 variables.

cost

total cost.

output

total output.

labor

wage rate.

laborshare

cost share for labor.

capital

capital price index.

capitalshare

cost share for capital.

fuel

fuel price.

fuelshare

cost share for fuel.

Details

The data are from Christensen and Greene (1976) and pertain to the year 1970. However, the file contains some extra observations, the holding companies. Only the first 123 observations are needed to replicate Christensen and Greene (1976).

References

Christensen, L. and Greene, W.H. (1976). Economies of Scale in U.S. Electric Power Generation. Journal of Political Economy, 84, 655--676.

Greene, W.H. (2003). Econometric Analysis, 5th edition. Upper Saddle River, NJ: Prentice Hall.

See Also

Greene2003, Electricity1955

Examples

data("Electricity1970")

## Greene (2003), Ex. 5.6: a generalized Cobb-Douglas cost function
fm <- lm(log(cost/fuel) ~ log(output) + I(log(output)^2/2) + 
  log(capital/fuel) + log(labor/fuel), data=Electricity1970[1:123,])