Abstract
Using 32-yr data for five southern European economies, we investigate the role of energy in their production function. Based on input-output and other econometric tests, we conclude that by incorporating energy in the production function as a factor-input, specification errors are avoided. We find energy and capital to be substitutes with each other. The use of flexible translog specification allows the derivation of elasticity estimates in a two-output, three-input framework and fits the data well.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
