Australian coal mining: Estimating technical change and resource rents in a translog cost function
This paper estimates a translog cost function for the Australian coal industry from 1968/69 to 2004/05. We use a variable measuring the shift to open-pit mining to capture the impact of embodied technical change, while using a time trend to capture the impact of other technical change and changing r...
| Main Authors: | , , |
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| Format: | Working Paper |
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Oil and Gas Management, Curtin Business School
2007
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/6919 |
| Summary: | This paper estimates a translog cost function for the Australian coal industry from 1968/69 to 2004/05. We use a variable measuring the shift to open-pit mining to capture the impact of embodied technical change, while using a time trend to capture the impact of other technical change and changing resource rents. The cost function is estimated with Zellner's SUR procedure. The shift to open-cut mining is shown to be important in lowering cost during the 1970s and 1980s, but more recently cost reduction is captured by the time trend. |
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