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A Switching Regression Model with Different Change-Points for Individual Coefficients and its Application to the Energy Demand Equations for Japan

  • Toshihisa Toyoda
  • Kazuhiro Ohtani
Conference paper
Part of the Studies in Empirical Economics book series (STUDEMP)

Abstract

In this paper, we set up a switching regression model in which individual coefficients are allowed to shift at different change-points. We also apply it to the energy demand equations and examine structural change in the demands for total fuel oil and for light oil and kerosene at the second oil crisis. It is shown that assuming the different change-points for individual coefficients yields more plausible results than assuming the same change-point for all coefficients.

Keywords

Price Elasticity Relative Price Income Elasticity Demand Equation Individual Coefficient 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Physica-Verlag Heidelberg 1989

Authors and Affiliations

  • Toshihisa Toyoda
    • 1
    • 2
  • Kazuhiro Ohtani
    • 2
  1. 1.Department of EconomicsUniversity of EssexColchesterEngland
  2. 2.Faculty of EconomicsKobe UniversityNada-ku, Kobe 657Japan

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