R: Cost Function of Electricity Producers (1955, Nerlove Data)

Electricity1955 {AER} | R Documentation

## Cost Function of Electricity Producers (1955, Nerlove Data)

### Description

Cost function data for 145 (+14) US electricity producers in 1955.

### Usage

    data("Electricity1955")

### Format

A data frame containing 159 observations on 8 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 contains several extra observations that are aggregates of commonly owned firms. Only the first 145 observations should be used for analysis.

### Source

Online complements to Greene (2003). Table F14.2.

http://pages.stern.nyu.edu/~wgreene/Text/tables/tablelist5.htm

### References

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

Nerlove, M. (1963) “Returns to Scale in Electricity Supply.” In C. Christ (ed.), Measurement in Economics: Studies in Mathematical Economics and Econometrics in Memory of Yehuda Grunfeld. Stanford University Press, 1963.

### See Also

`Greene2003`, `Electricity1970`

### Examples

    data("Electricity1955")
    Electricity <- Electricity1955[1:145,]

    ## Greene (2003)
    ## Example 7.3
    ## Cobb-Douglas cost function
    fm_all <- lm(log(cost/fuel) ~ log(output) + log(labor/fuel) + log(capital/fuel),
      data = Electricity)
    summary(fm_all)

    ## hypothesis of constant returns to scale
    linearHypothesis(fm_all, "log(output) = 1")

    ## Table 7.4
    ## log quadratic cost function
    fm_all2 <- lm(log(cost/fuel) ~ log(output) + I(log(output)^2) + log(labor/fuel) + log(capital/fuel),
      data = Electricity)
    summary(fm_all2)

    ## More examples can be found in:
    ## help("Greene2003")

[Package AER version 1.2-5 Index]