Ft. Denton et al., INDUSTRY-REGION LOAD PROFILES - ECONOMETRIC ESTIMATION BASED ON MARGINAL TOTALS, The annals of regional science, 30(2), 1996, pp. 223-246
A theoretical model and a two-stage econometric estimation procedure a
re proposed for determining the parameters of industry-region-specific
cost, input-demand, or other functions using grouped data. The model
and estimation procedure are appropriate when only marginal totals or
averages are available, or when data are classified by both region and
industry but many cells are empty or sparsely represented. An applica
tion is reported in which load functions for the hourly input of elect
ricity are estimated for each day of the week and each month of the ye
ar in each cell of a 31 x 7 industry-region matrix. The use of the mod
el to simulate the sensitivity of electricity demand to regional locat
ion and weather variability is illustrated.