data for q uestion b OBSNO COST70 KWH70 PL70 PK70 PF70 LNC70 LNY70 LNP170 LNP270
ID: 3182009 • Letter: D
Question
data for q uestion b
OBSNO COST70 KWH70 PL70 PK70 PF70 LNC70 LNY70 LNP170 LNP270 1 0.213 8 6869.47 64.945 18 -4.437 2.079 5.944 1.283 20 0.4887 14 5438.89 86.11 34.15 -4.247 2.639 5.071 0.925 17 0.6159 50 9204.24 90.47 32.07 -3.953 3.912 5.659 1.037 14 0.7606 65 8971.89 41.243 28.539 -3.625 4.174 5.751 0.368 28 0.6363 67 6696.5 58.258 25.4 -3.687 4.205 5.575 0.830 22 1.1474 90 7189.67 79.101 21.503 -2.931 4.500 5.812 1.303 16 1.3422 183 5063.49 74.43 35.51 -3.276 5.209 4.960 0.740 15 2.2587 295 8218.4 71.94 39.2 -2.854 5.687 5.345 0.607 27 2.0532 374 7884.94 82.458 26.3014 -2.550 5.924 5.703 1.143 30 3.1504 378 7895.43 60.277 42.4683 -2.601 5.935 5.225 0.350 35 4.505 467 8410.34 76.3 26.85 -1.785 6.146 5.747 1.044 38 3.7255 643 7332.13 64.506 21.1619 -1.737 6.466 5.848 1.115 45 6.6214 856 8033.72 67.68 39.5812 -1.788 6.752 5.313 0.536 4 3.0427 869 8372.96 68.227 21.067 -1.935 6.767 5.985 1.175 36 5.5971 938 7703.26 77.197 25.4 -1.513 6.844 5.715 1.112 32 5.8488 1025 7093.32 68.227 22.2793 -1.337 6.932 5.763 1.119 48 8.6372 1090 8507.92 39.127 33.9 -1.367 6.994 5.525 0.143 59 7.4395 1293 6821.09 78.225 21.4305 -1.058 7.165 5.763 1.295 41 6.0065 1328 6680.77 51.817 25.2319 -1.435 7.191 5.579 0.720 5 9.4059 1412 7960.9 40.692 41.53 -1.485 7.253 5.256 -0.020 55 6.6221 1500 7588.7 82.84 21.3951 -1.173 7.313 5.871 1.354 47 8.6852 1627 7912.4 79.22 31.6801 -1.294 7.394 5.520 0.917 61 9.7843 1627 8355.75 76.14 31.3374 -1.164 7.394 5.586 0.888 31 10.3136 1886 6833.93 67.68 25.6 -0.909 7.542 5.587 0.972 168 14.271 1901 9822.64 69.411 36 -0.925 7.550 5.609 0.657 67 14.0431 2001 8611.53 74.025 30.6446 -0.780 7.601 5.638 0.882 77 18.8963 2020 10806.2 79.57 46.9 -0.909 7.611 5.440 0.529 50 11.2419 2258 6892.61 81.096 29.1 -0.951 7.722 5.467 1.025 178 14.9529 2325 8568.23 53.89 38.9161 -0.957 7.751 5.394 0.326 58 13.627 2437 7846.06 65.565 30.6712 -0.811 7.799 5.544 0.760 78 13.2679 2445 8764.75 76.14 28.3648 -0.760 7.802 5.733 0.987 69 16.1764 2487 8088.45 66.622 32.6186 -0.701 7.819 5.513 0.714 57 10.966 2506 7412.36 57.24 27.4207 -0.916 7.826 5.600 0.736 44 12.783 2632 8496.84 70.295 30.971 -0.885 7.875 5.614 0.820 65 19.7092 2682 9484.85 81.75 50.4516 -0.940 7.894 5.236 0.483 46 9.6429 2689 6364.4 78.44 23.4889 -0.890 7.897 5.602 1.206 68 10.1902 2764 6338 66.232 21.197 -0.732 7.924 5.700 1.139 25 7.5492 2969 8183.34 80.657 9 -0.176 7.996 6.813 2.193 75 22.5612 3571 7297.71 78.255 41.5951 -0.612 8.181 5.167 0.632 167 21.5587 3886 9538.68 63.569 30.8894 -0.360 8.265 5.733 0.722 62 20.8671 3965 8403.59 74.48 33.1992 -0.464 8.285 5.534 0.808 80 21.5454 3981 8186.05 75.082 35.2049 -0.491 8.289 5.449 0.757 89 17.4802 4148 7536.89 74.025 24.5837 -0.341 8.330 5.725 1.102 82 29.8011 4187 7996.44 74.12 47.4257 -0.465 8.340 5.128 0.447 181 19.4391 4560 8558.37 76.464 23.7777 -0.201 8.425 5.886 1.168 96 30.2067 5286 7084.1 73.325 38.3384 -0.238 8.573 5.219 0.648 103 24.2903 5316 9759.83 74.025 27.838 -0.136 8.578 5.860 0.978 85 30.8773 5643 10182.5 61.04 27.8498 0.103 8.638 5.902 0.785 95 22.4421 5648 8954.12 78.44 25.916 -0.144 8.639 5.845 1.107 179 33.9733 5708 10024.2 78.102 42.166 -0.216 8.650 5.471 0.616 91 19.9008 5785 7969.55 71.91 22.2448 -0.111 8.663 5.881 1.173 111 37.0666 6754 10177.9 77.197 25.6208 0.369 8.818 5.985 1.103 81 35.5303 6770 7798.26 67.57 29.825 0.175 8.820 5.566 0.818 112 25.1686 6779 7826.93 74.2 20.279 0.216 8.822 5.956 1.297 87 24.3565 6793 6336.88 70.295 18.5909 0.270 8.824 5.831 1.330 76 33.0175 6837 7310.15 69.795 28.4405 0.149 8.830 5.549 0.898 110 40.5281 6891 6769.55 74.12 35.9651 0.119 8.838 5.238 0.723 71 42.2514 7320 5879.51 92.063 39.2104 0.075 8.898 5.010 0.854 177 33.8814 7382 7512.72 72.362 25.9001 0.269 8.907 5.670 1.027 104 31.2922 7484 8063.73 67.68 23.5267 0.285 8.921 5.837 1.057 94 27.0832 7896 7119.96 74.513 20.11 0.298 8.974 5.869 1.310 100 32.584 7930 7119.01 48.997 22.838 0.355 8.978 5.742 0.763 120 52.7634 9145 10373.5 81.75 35.8083 0.388 9.121 5.669 0.825 115 41.1798 9275 8657.53 76.14 24.5804 0.516 9.135 5.864 1.131 102 47.3864 9530 7624.57 83.88 31.5825 0.406 9.162 5.487 0.977 97 30.1678 9602 7054.18 59.977 20.201 0.401 9.170 5.856 1.088 92 28.7861 9660 6686.73 79.542 20.263 0.351 9.176 5.799 1.367 132 57.7267 10004 6472.86 76.3 28.0959 0.720 9.211 5.440 0.999 123 38.8472 10057 6035.95 81.578 25.824 0.408 9.216 5.454 1.150 105 31.9884 10149 6437.92 73.14 18.5343 0.546 9.225 5.850 1.373 166 51.7415 10361 9578.63 68.016 28.1423 0.609 9.246 5.830 0.882 114 55.1764 10855 8061.96 71.49 31.7601 0.552 9.292 5.537 0.811 125 48.1125 11114 8413.86 69.975 22.5536 0.758 9.316 5.922 1.132 139 76.2528 11667 10436.3 80.66 46.0701 0.504 9.365 5.423 0.560 169 66.1032 11837 8709.43 75.379 31.3321 0.747 9.379 5.628 0.878 118 68.48 12542 8142.84 80.385 35.7882 0.649 9.437 5.427 0.809 126 79.0705 12706 9282.51 70.853 37.2477 0.753 9.450 5.518 0.643 113 45.1827 12936 8320.06 65.76 22.033 0.718 9.468 5.934 1.093 106 41.9016 12954 6460.64 62.33 21.755 0.655 9.469 5.694 1.053 129 77.8849 13702 7113.79 70.85 34.9616 0.801 9.525 5.316 0.706 119 97.3859 13846 7786.37 88.54 44.1571 0.791 9.536 5.172 0.696 117 80.3593 16311 7282.61 81.55 40.9692 0.674 9.700 5.180 0.688 176 79.6207 16508 9404.97 78.044 42.2086 0.635 9.712 5.406 0.615 135 90.7168 17280 9191.47 72.967 36.8816 0.900 9.757 5.518 0.682 109 58.1154 17875 6288.41 73.395 20.6191 1.036 9.791 5.720 1.270 174 107.978 18455 6690.23 76.3 32.9654 1.186 9.823 5.313 0.839 140 134.228 19445 9829.32 67.58 38.8027 1.241 9.875 5.535 0.555 171 90.3718 21956 7954.47 83.338 22.9115 1.372 9.997 5.850 1.291 170 113.256 22522 9500.78 76.732 25.0289 1.510 10.022 5.939 1.120 127 111.868 23217 6873.73 83.88 33.3944 1.209 10.053 5.327 0.921 142 125.336 24001 8047.35 74.372 33.0932 1.332 10.086 5.494 0.810 137 183.232 27118 9914.36 78.48 41.7578 1.479 10.208 5.470 0.631 130 87.1015 27708 6378.23 63.6 20.3 1.456 10.229 5.750 1.142 144 240.514 29613 9312.93 81.75 41.8872 1.748 10.296 5.404 0.669 143 191.563 30958 9810.1 69.541 36.3076 1.663 10.340 5.599 0.650 141 168.378 34212 5683.83 80.385 40.5286 1.424 10.440 4.943 0.685 138 169.235 38343 9117.16 65.992 31.5897 1.678 10.554 5.665 0.737 175 269.773 46870 9761.38 69.541 33.1999 2.095 10.755 5.684 0.739 172 240.486 53918 6068.87 78.38 31.1954 2.042 10.895 5.271 0.921 Nerlove's returns to scale results were based on 1955 data for 145 electric utility companies in the United States. These data have been updated to 1970 and have been used for estimation by Christensen and Greene [1976]. In this exercise you compare returns-to-scale estimates based on the 1955 and the 1970 data and then evaluate the Christensen-Greene finding that by 1970 the bulk of electricity generation in the United States came from firms operating very near the bottom of their average cost curves. The 1970 data are presented in the CHAP3.DAT subdirectory data file Exercises 91 called UPDATE. The 1970 data sample is smaller, consisting of 99 observa- tions, and like the data in NERLOV, the observations are ordered by size of firm, as measured by kilowatt hour output. The variables in the UPDATE data file include the original Christensen-Greene observation number (OBSNO), total costs in millions of 1970 dollars (COST70), millions of kilo- watt hours of output (KWH70), the price of labor (PL70), the rental price index for capital (PK700, and the price index for fuels (PF70. (Notice that the numbers "70" have been added to the COST, KWH, PL, PK, and PF variables to distinguish these 1970 updated data from the Nerlove 1955 32 data.)Explanation / Answer
Sol:
I will be solving this using SAS software. You may refer the formula to generate the coefficients of the equation and verify the result.
Program:
proc reg data=work.import;
model LNC70 = LNY70 LNP170 LNP270;
run;
The REG Procedure
Model: MODEL1
Dependent Variable: LNC70 LNC70
Number of Observations Read 99 Number of Observations Used 99Related Questions
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