Industry-Region Load Profiles: Econometric Estimation Based on Marginal Totals

A theoretical model and a two-stage econometric estimation procedure are proposed for determining the parameters of industry-region-specific cost, input-demand, or other functions using grouped data. The model and estimation procedure are appropriate when only marginal totals or averages are available, or when data are classified by both region and industry but many cells are empty or sparsely represented. An application is reported in which load functions for the hourly input of electricity are estimated for each day of the week and each month of the year in each cell of a 31 x 7 industry-region matrix. The use of the model to simulate the sensitivity of electricity demand to regional location and weather variability is illustrated.