utility {micEcon}

Fossil Fuel Fired Steam Electric Power Plants

Description

The data frame utility is a panel data set of 72 investor-owned fossil fuel fired steam electric power plants in the United States over eleven years (1986-1996). This data set has 791 observations and, thus, is almost balanced (only one firm-year observation is missing). This data set is used as an example in Kumbhakar, Wang, and Horncastle (2015).

Usage

data(utility)

Format

This data frame contains the following columns/variables:

firm

firm number (1-72).

year

last two digits of the year (86-96).

y

net steam electric power generation in MWh.

regu

a dummy variable indicating whether the firm is regulated.

k

capital input quantity (estimate of capital cost).

labor

quantity index of labor and maintenance input (costs of labor and maintenance divided by wl).

fuel

quantity index of fuel input. (costs of fuel divided by wf).

wl

cost-share weighted price of labor and maintenance.

wf

average price of fuel (coal, oil and gas) in USD per BTU.

wk

price of the capital input.

Details

This data set is a revised version of the data set that is used in Kumbhakar and Wang (2006). A detailed description of the data set and the variables can be found in Section 4 of Kumbhakar and Wang (2006).

Source

Companion website to Kumbhakar, Wang, and Horncastle (2015): https://sites.google.com/site/sfbook2014/.

References

Kumbhakar, Subal C. and Hung-Jen Wang (2006): Estimation of Technical and Allocative Inefficiency: A Primal System Approach, Journal of Econometrics 134(2), p. 419-440. (doi:10.1016/j.jeconom.2005.07.001)

Kumbhakar, Subal C., Hung-Jen Wang, and Alan P. Horncastle (2015): A Practitioner's Guide to Stochastic Frontier Analysis Using Stata. Cambridge University Press. (doi:10.1017/CBO9781139342070)