Abstract
The purpose of this paper is to employ the dynamic translog framework to model inter-factor and inter-fuel energy demand for the Thai manufacturing sector. The Denny, Fuss and Waverman (1981) and Lynk (1989) framework, which proposes a dynamic adjustment for capital stock is employed to motivate the estimated of factor demand and fuel share equations. Three factors: energy, labour and capital; and five fuel types: fuel oil, diesel oil, LPG, electricity, and coal and lignite; are examined. Regression diagnostics support the empirical specification. Numerous factor and fuel substitution possibilities are identified, with some policy implications described.
| Original language | English |
|---|---|
| Pages (from-to) | 2261-2267 |
| Number of pages | 7 |
| Journal | Applied Economics |
| Volume | 39 |
| Issue number | 17 |
| DOIs | |
| Publication status | Published - 2007 |