The Demand for Labour, Capital, Fuels and Electricity: A Sectoral Model of the United Kingdom Economy

Abstract

Uses a disaggregated model of United Kingdom factor usage to provide estimates of demand and substitution elasticities for energy inputs. Estimates 19 sectors in a two‐stage translog model including technical change, non‐constant returns and four energy inputs. The results show considerable variation between sectors in the sign and size of the elasticities. The disaggregated model allows prediction of the sectoral change in employment as a consequence of an energy price rise, and is consistent with a decline of manufacturing employment in the UK associated with a rise in the aggregate price of energy.

Citation

Harris, A., McAvinchey, I.D. and Yannopoulos, A. (1993), "The Demand for Labour, Capital, Fuels and Electricity: A Sectoral Model of the United Kingdom Economy", Journal of Economic Studies, Vol. 20 No. 3. https://doi.org/10.1108/01443589310040378