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Energy crises and change of technology
Author(s) -
Ilmakunnas P.,
Törmä H.
Publication year - 1994
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.3950090306
Subject(s) - economics , econometrics , energy (signal processing) , capital (architecture) , production (economics) , partial equilibrium , technological change , technical change , structural change , product (mathematics) , microeconomics , general equilibrium theory , macroeconomics , mathematics , statistics , geometry , archaeology , productivity , history
A production model is formulated for the Finnish metal product and machinery industry for studying energy crises‐related structural changes. Two models are estimated: a partial static equilibrium model, where capital is treated as a fixed input in the short run, and a dynamic model, where adjustment costs of the capital input are taken into account. Alternative hypotheses of structural change are formulated as gradual parameter shifts. The results show that some of the energy‐related parameters have changed over time. Also the contributions of parameter changes and variations in the average values of the variables on the changes in the energy demand elasticities are studied. The most important effect is the strengthening of the energy‐saving bias in technical change.