A dynamic version of Considine's (1990) linear logit model is used to obtain theoretically consistent estimates of long-run price elasticities from pooled intercountry data on industrial energy consumption. This model also provides a rare direct estimate of the important rate of dynamic adjustment, revealing a median lag of ten years. The long-run demands for oil and coal are the most elastic, and the strongest channels for interfuel substitution are between oil and natural gas, with no significant evidence of complementarity between fuels.
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Clifton T. Jones (1996) studied this question.
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