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Modelling firm heterogeneity with spatial 'trends'

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  • C. Sarmiento

Abstract

The hypothesis underlying this article is that firm heterogeneity can be captured by spatial characteristics of the firm (similar to the inclusion of a time trend in time series models). The hypothesis is examined in the context of modelling electric generation by coal powered plants in the presence of firm heterogeneity.

Suggested Citation

  • C. Sarmiento, 2004. "Modelling firm heterogeneity with spatial 'trends'," Applied Economics Letters, Taylor & Francis Journals, vol. 11(5), pages 271-274.
    • Handle: RePEc:taf:apeclt:v:11:y:2004:i:5:p:271-274
    DOI: 10.1080/1350485042000221517
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    References listed on IDEAS

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    1. D. W. Jorgenson & Z. Griliches, 1967. "The Explanation of Productivity Change," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 34(3), pages 249-283.
    2. Diewert, W E & Wales, T J, 1992. "Quadratic Spline Models for Producer's Supply and Demand Functions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(3), pages 705-722, August.
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    Cited by:

    1. Solarin, Sakiru Adebola & Shahbaz, Muhammad & Hammoudeh, Shawkat, 2019. "Sustainable economic development in China: Modelling the role of hydroelectricity consumption in a multivariate framework," Energy, Elsevier, vol. 168(C), pages 516-531.
    2. Camilo Sarmiento & William Wilson, 2007. "Spatially correlated exit strategies in the baking industry," Applied Economics, Taylor & Francis Journals, vol. 39(4), pages 441-448.
    3. Camilo Sarmiento, 2005. "A mean squared error estimator of market size in hedonic price analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 12(6), pages 355-359.

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