Company Total Cost (million $) Output (billion kwh) Unit price of labor (wage rate, $/hour)

C1 0.082 2 2.09
C2 0.661 3 2.05
C3 0.99 4 2.05
C4 0.315 4 1.83
C5 0.197 5 2.12
C6 0.098 9 2.12
C7 0.949 11 1.98
C8 0.675 13 2.05
C9 0.525 13 2.19
C10 0.501 22 1.72
C11 1.194 25 2.09
C12 0.67 25 1.68
C13 0.349 35 1.81
C14 0.423 39 2.3
C15 0.501 43 1.75
C16 0.55 63 1.76
C17 0.795 68 1.98
C18 0.664 81 2.29
C19 0.705 84 2.19
C20 0.903 73 1.75
C21 1.504 99 2.2
C22 1.615 101 1.66
C23 1.127 119 1.92
C24 0.718 120 1.77
C25 2.414 122 2.09
C26 1.13 130 1.82
C27 0.992 138 1.8
C28 1.554 149 1.92
C29 1.225 196 1.92
C30 1.565 197 2.19
C31 1.936 209 1.92
C32 3.154 214 1.52
C33 2.599 220 1.92
C34 3.298 234 2.2
C35 2.441 235 2.11
C36 2.031 253 1.92
C37 4.666 279 2.05
C38 1.834 290 1.66
C39 2.072 290 1.8
C40 2.039 295 1.77
C41 3.398 299 1.7
C42 3.083 324 2.05
C43 2.344 333 2.19
C44 2.382 338 1.85
C45 2.657 353 2.19
C46 1.705 353 2.13
C47 3.23 416 1.54
C48 5.049 420 1.52
C49 3.814 456 2.09
C50 4.58 484 1.75
C51 4.358 516 2.3
C52 4.714 550 2.05
C53 4.357 563 2.32
C54 3.919 566 2.31
C55 3.442 592 1.92
C56 4.898 671 2.05
C57 3.584 696 1.76
C58 5.535 719 1.7
C59 4.406 742 2.04
C60 4.289 795 2.24
C61 6.731 800 1.7
C62 6.895 808 1.68
C63 5.112 811 2.29
C64 5.141 855 2
C65 5.72 860 2.31
C66 4.691 909 1.45
C67 6.832 913 1.7
C68 4.813 924 1.76
C69 6.754 984 1.7
C70 5.127 991 2.09
C71 6.388 1000 1.55
C72 4.509 1098 2.11
C73 7.185 1109 2.05
C74 6.8 1118 2.3
C75 7.743 1122 2.19
C76 7.968 1137 2.04
C77 8.858 1156 2.31
C78 8.588 1166 1.7
C79 6.449 1170 2.05
C80 8.488 1215 2.19
C81 8.877 1279 2
C82 10.274 1291 2.32
C83 6.024 1290 1.55
C84 8.258 1331 2.13
C85 13.376 1373 2.2
C86 10.69 1420 2.2
C87 8.308 1474 1.85
C88 6.082 1497 1.76
C89 9.284 1545 1.8
C90 10.879 1649 2.32
C91 8.477 1668 1.8
C92 6.877 1782 2.13
C93 15.106 1831 1.98
C94 8.031 1833 1.76
C95 8.082 1838 1.45
C96 10.866 1787 2.24
C97 8.596 1918 1.69
C98 8.673 1930 1.81
C99 15.437 2028 2.11
C100 8.211 2057 1.76
C101 11.982 2084 1.77
C102 16.674 2226 2
C103 12.62 2304 2.3
C104 12.905 2341 2.04
C105 11.615 2353 1.69
C106 9.321 2367 1.76
C107 12.962 2451 2.04
C108 16.932 2457 2.2
C109 9.648 2507 1.76
C110 18.35 2530 2.31
C111 17.333 2576 1.92
C112 12.015 2607 1.76
C113 11.32 2870 1.76
C114 22.337 2993 2.31
C115 19.035 3202 2.3
C116 12.205 3286 1.61
C117 17.078 3312 1.68
C118 25.528 3498 2.09
C119 24.021 3538 2.09
C120 32.197 3794 2.05
C121 26.652 3841 2.29
C122 20.164 4014 2.11
C123 14.132 4217 1.53
C124 21.41 4305 2.11
C125 23.244 4494 2.04
C126 29.845 4764 2.19
C127 32.318 5277 1.92
C128 21.988 5283 2.04
C129 35.229 5668 2.11
C130 17.467 5681 1.76
C131 22.828 5819 1.79
C132 33.154 6000 2.11
C133 32.228 6119 1.54
C134 34.168 6136 1.92
C135 40.594 7193 2.12
C136 33.354 7886 1.61
C137 64.542 8419 2.32
C138 41.238 8642 2.24
C139 47.993 8787 2.31
C140 69.878 9484 2.11
C141 44.894 9956 1.68
C142 67.12 11477 2.24
C143 73.05 11796 2.12
C144 139.422 14359 2.31
C145 119.939 16719 2.3
Unit price of capital (index) Unit price of fuel (cent/million BTU)
183 17.9
174 35.1
171 35.1
166 32.2
233 28.6
195 28.6
206 35.5
150 35.1
155 29.1
188 15
170 17.9
167 39.7
213 22.6
164 23.6
170 42.8
161 10.3
210 35.5
158 28.5
156 29.1
176 42.8
170 36.2
192 33.4
164 22.5
175 21.3
180 17.9
176 38.9
202 20.2
227 22.5
186 29.1
183 29.1
169 22.5
168 27.5
164 22.5
164 36.2
170 24.4
158 22.5
177 35.1
195 33.4
176 20.2
188 21.3
187 26.9
152 35.1
157 29.1
163 24.6
143 29.1
167 10.7
217 26.2
144 27.5
178 30
176 42.8
167 23.6
158 35.1
162 31.9
198 33.5
164 22.5
164 35.1
161 10.3
174 26.9
157 20.7
185 26.5
157 26.9
203 39.7
178 28.5
183 34.3
168 33.5
196 17.6
166 26.9
172 10.3
158 26.9
174 30
225 28.2
168 24.4
177 35.1
161 23.6
162 29.1
158 20.7
176 33.5
183 26.9
166 35.1
164 29.1
207 34.3
175 31.9
225 28.2
178 30
157 36.2
138 36.2
163 24.6
168 10.3
158 20.2
177 31.9
170 20.2
183 10.7
162 35.5
177 10.3
196 17.6
164 26.5
158 12.9
157 22.6
163 24.4
161 10.3
156 21.3
217 34.3
161 23.6
183 20.7
167 12.9
161 10.3
163 20.7
170 36.2
174 10.3
197 33.5
162 22.5
155 10.3
167 10.3
176 33.5
170 23.6
183 17.8
190 28.8
170 30
176 30
159 35.1
157 28.5
161 24.4
172 18.1
203 24.4
167 20.7
195 29.1
161 29.1
159 20.7
177 24.4
157 10.3
196 18.5
183 24.4
189 26.2
160 22.5
162 28.6
178 17.8
199 31.9
182 26.5
190 33.5
165 24.4
203 28.8
151 26.5
148 28.6
212 33.5
162 23.6
 TP 1 Econométrie MCO-OLS
Régression multiple

The data analyzed a cost function for 145 American electric companies.
We are interested in estimating a cost function: C=f (Q,PL,PF,PK) where the variables are
listed in the table below.
C :Total Cost
Q : Output
PL : Unit price of labor
PK : Unit price of capital
PF : Unit price of fuel
(a) First, estimate an unrestricted Cobb-Douglass specification only with Cost of labor

(a) Eestimate an unrestricted Cobb-Douglass specification only with Cost of Capital

(c) Interpret the OLS coefficients

(d) What do you think about results

The data analyzed a cost function for 145 American electric companies.
We are interested in estimating a cost function: C=f (Q,PL,PF,PK) where the variables are
listed in the table below.
C :Total Cost
Q : Output
PL : Unit price of labor
PK : Unit price of capital
PF : Unit price of fuel
(a) First, estimate an unrestricted Cobb-Douglass specification

(b) What is the economic meaning of the restriction

(c) Estimate the restricted OLS coefficients

(d) What do you think about results

(e) Test H0