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Empirical Economics

, Volume 14, Issue 2, pp 93–103 | Cite as

A switching regression model with different change-points for individual coefficients and its application to the energy demand equations for Japan

  • T. Toyoda
  • K. Ohtani
Article

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

Regression Model Structural Change Economic Theory Energy Demand Coefficient Yield 
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 1989

Authors and Affiliations

  • T. Toyoda
    • 1
    • 2
  • K. Ohtani
    • 2
  1. 1.Department of EconomicsUniversity of EssexWivenhoe ParkEngland
  2. 2.Faculty of EconomicsKobe UniversityKobeJapan

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