Long-run production modeling with pseudo data: electric power generation

摘要: This paper presents a new approach to long-run production modeling which combines the simplicity of statistical cost function with technical detail process analysis. Pseudo data, are generated by an electric power model, depict cost-minimizing input configurations for alternative relative prices. The pseudo data then utilized estimate translog function, provides price and substitution elasticities as well convenient form micromodeling. offer numerous advantages compared conventional time series particularly in that they avoid multicollinearity, limited sample range, inadequate environmental detail.