Three essays on resource economics. Demand systems for energy forecasting: Practical considerations for estimating a generalized logit model, To borrow or not to borrow: A variation on the MacDougal -Kemp theme, and, Valuing reduced risk for households

his thesis presents papers on three areas of study within resource and environmental economics. “Demand Systems For Energy Forecasting” provides some practical considerations for estimating a Generalized Logit model. The main reason for using this demand system for energy and other factors is that the derived price elasticities are robust when expenditure shares are small. The primary objective of the paper is to determine the best form of the cross-price weights, and a simple inverse function of the expenditure share is selected. A second objective is to demonstrate that the estimated elasticities are sensitive to the units specified for the prices, and to show how price scales can be estimated as part of the model.;“To Borrow or Not to Borrow: A Variation on the MacDougal-Kemp Theme” studies the impact of international capital movements on the conditional convergence of economies differing from each other only in initial wealth. We found that in assets, income, consumption and utility, convergence obtains, with and only with, the absence of international capital movement. When a rich country invests in a poor country, the balance of debt increases forever. Asset ownership is increased in all periods for the lender, and asset ownership of the borrower is deceased. Also, capital investment decreases the lender's utility for early periods, but increases it forever after a cross-over point. In contrast, the borrower's utility increases for early periods, but then decreases forever.;“Valuing Reduced Risk for Households with Children or the Retired” presents a theoretical model of how families value risk and then exams family automobile purchases to impute the average Value of a Statistical Life (VSL) for each type of family. Data for fatal accidents are used to estimate survival rates for individuals in different types of accidents, and the probabilities of having accidents for different types of vehicle. These models are used to determine standardized risks for vehicles in hedonic models of the purchase price and fuel efficiency. The hedonic models determine the marginal capital and operating costs of reducing the risk of mortality. We find that households with children are valued much more highly than the average VSL of...