Geoscience Reference
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Table 10.2 Estimation results of CES elasticity of substitution
OLS
Spatial econometric (SE)
Spatial or
time effect
Sector
Coef.
Total Coef.
Direct
Indirect
Model type
Agriculture
0.62***
0.62***
SEM
TF
Manufacture
0.53***
0.36***
0.39***
0.03***
SDM
TF
Utility&
Construction
0.55***
0.53***
0.50***
0.03***
SDM
TF
Trade
0.84***
0.84***
0.84***
0.00
SDM
N/A
Truck
0.15*** SAR TF
Rail 0.33*** 0.24*** 0.23*** 0.01 SDM TF
Air 0.77*** 0.61*** 0.72*** 0.11*** SAR TF
Transit 0.72*** 0.68*** SEM TF
Water 0.70*** 0.72*** 0.70*** 0.02 SDM TF
Pipeline 0.51*** 0.70*** 0.47*** 0.23*** SDM SF + TF
Warehouse 0.93*** 0.94*** 0.93*** 0.01 SDM N/A
Information 1.03*** 0.96*** 1.02*** 0.06*** SDM TF
Service 0.91*** 0.92*** 0.91*** 0.001 SDM TF
Model type indicates the specific spatial model used for Spatial Econometric (SE) estimation.
Spatial or time effect indicates the types of effects being used based on the Elhorst ( 2012 ) testing
routine. TF denotes time fixed effect, SF denotes spatial fixed effect, and N/A denotes no effect.
OLS indicates result is estimated through OLS analysis while SE indicates result is estimated
through spatial econometric analysis
Note: ***, **, * denote coefficients are significant at 1 %, 5 % and 10 % statistical level,
respectively
Source : Authors' calculation
0.61***
0.43***
058***
estimation, the spillover effects of factor substitution elasticity can be adequately
estimated under the spatial econometric estimation procedure.
10.6 Data
Data used for this analysis includes two components: the first is panel data includ-
ing quantity and price of capital and labor for the 13 economic sectors covering the
48 contiguous states in the US and the District of Columbia for the period from
1997 to 2011. The data is used to estimate elasticities of factor substitution for the
13 sectors. The second is a US national social accounting matrix (SAM), which is
constructed from the GTAP 8 data base.
The GTAP 8 data base is developed by the Center of Global Trade Analysis at
Purdue University. The latest version of GTAP data contains dual reference years of
2004 and 2007 as well as 129 world countries and regions for all 57 commodity
types. Since our research interest is on multiple modes of transportation,
non-transportation sectors are grouped into seven industrial sectors including agri-
culture, manufacture, utility and construction, trade, information, warehouse and
service. Transportation sectors are originally divided into three commodity types in
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