Functional Forms and the Demand for Commercial Electricity in the U.S

This paper examines the demand for commercial electricity in the U.S. and focuses on the functional form. The results show that the linear-log form performs better than the log-log, linear and log-linear forms. The demand for commercial electricity is positively affected by real GDP, the real price of commercial natural gas and the lagged dependent variable and negatively associated with the real own price. Long-run price, income and cross-price elasticities of the demand for commercial electricity consumption in absolute values have declined over time.