Energy Substitution: When Model Selection Depends on the Focus
Behl P, Dette H, Frondel M, Tauchmann H (2013)
Publication Language: English
Publication Type: Journal article
Publication year: 2013
Journal
Publisher: Elsevier
Book Volume: 39
Pages Range: 233-238
Abstract
In contrast to conventional model selection criteria, the Focused Information Criterion (FIC) allows for the
purpose-specific choice of model specifications. This accommodates the idea that one kind of model might
be highly appropriate for inferences on a particular focus parameter, but not for another. Ever since its development,
the FIC has been increasingly applied in the realm of statistics, but this concept appears to be virtually
unknown in the literature on energy and production economics. Using the classical example of the
Translog cost function and production data for 35 U.S. industry sectors (1960–2005), this paper provides
for an empirical illustration of the FIC and demonstrates its usefulness in selecting production models, thereby
focusing on the ease of substitution between energy and capital versus energy and labor.
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Germany (DE)How to cite
APA:
Behl, P., Dette, H., Frondel, M., & Tauchmann, H. (2013). Energy Substitution: When Model Selection Depends on the Focus. Energy Economics, 39, 233-238.
MLA:
Behl, Peter, et al. "Energy Substitution: When Model Selection Depends on the Focus." Energy Economics 39 (2013): 233-238.
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