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Evolving seasonal patterns in UK energy series

Research output: Chapter in Book/Report/Conference proceedingChapter (peer-reviewed)peer-review

UK Energy series exhibit pronounced regular but not necessarily fixed seasonal patterns. Failure to reflect such changing patterns in econometric models of energy use can result both in misleading estimates of elasticities and policy responses and in forecasts which under- and over-predict seasonal peaks and troughs. Structural Times Series models permit the formulation, estimation and testing of models which allow for evolving stochastic seasonal components and reflect changing patterns of economic behaviour. Moreover such components can be incorporated into causal regression equations to permit greater flexibility in modelling the seasonal variation than is possible using ordinary dummy variables. By estimating suitable dynamic models which allow for evolving seasonal effects and then nesting the fixed effects models, we compare estimated elasticities and test the restriction of fixed seasonal effects.
Original languageEnglish
Title of host publicationThe UK energy experience: a model or a warning?
EditorsG. Mackerron, P. Pearson
Place of PublicationLondon
PublisherImperial College Press
Pages259-270
Number of pages12
ISBN (Print)9781860940224
DOIs
Publication statusPublished - Mar 1996
EventTHE UK ENERGY EXPERIENCE A Model or A Warning? - University of Warwick
Duration: 11 Dec 199512 Dec 1995

Conference

ConferenceTHE UK ENERGY EXPERIENCE A Model or A Warning?
Period11/12/9512/12/95

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ID: 131859