Version 1
: Received: 31 December 2019 / Approved: 2 January 2020 / Online: 2 January 2020 (04:22:15 CET)
How to cite:
Hasanov, F.J.; Mikayilov, J.L. Energy Demand Relationship: Theory and Empirical Application. A Short Note. Preprints.org2020, 2020010008. https://doi.org/10.20944/preprints202001.0008.v1
Hasanov, F.J.; Mikayilov, J.L. Energy Demand Relationship: Theory and Empirical Application. A Short Note. Preprints.org 2020, 2020010008. https://doi.org/10.20944/preprints202001.0008.v1
Cite as:
Hasanov, F.J.; Mikayilov, J.L. Energy Demand Relationship: Theory and Empirical Application. A Short Note. Preprints.org2020, 2020010008. https://doi.org/10.20944/preprints202001.0008.v1
Hasanov, F.J.; Mikayilov, J.L. Energy Demand Relationship: Theory and Empirical Application. A Short Note. Preprints.org 2020, 2020010008. https://doi.org/10.20944/preprints202001.0008.v1
Abstract
In this short note, the described step-by-step derivations of the industrial energy demand function from the production function framework and provided researchers with two specifications. Then we applied these theoretical specifications to the time series data as empirical analysis. We concluded that theories should be considered at the beginning of the empirical analyses but the data also should be allowed to speak freely. Hence, the main suggestion of this short note is that it would be a better strategy to consider the combination of theory-driven and data-driven approaches in the empirical analyses.
Keywords
theory of energy demand; empirical application; cointegration; theory-driven approach; data-driven approach
Subject
Business, Economics and Management, Economics
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
