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Economics - Economic Theory | Time-To-Build - Interrelated Investment and Labour Demand Modelling With Applications to Six OECD


Interrelated Investment and Labour Demand Modelling With Applications to Six OECD Countries

Peeters, Marga

Softcover reprint of the original 1st ed. 1995, IX, 204 pp.

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  • About this book

As large physical capital stock projects need long periods to be built, a time-to-build specification is incorporated in factor demand models. Time-to-build and adjustment costs dynamics are identified since by the first moving average dynamics, whereas by the latter autoregressive dynamics are induced. Empirical evidence for time-to-build is obtained from data from the Dutch construction industry and by the estimation result from the manufacturing industry of six OECD countries.

Content Level » Research

Keywords » Algorithmen - Investition - Investments - Labour Demand - PREN - Time-to-Build - nichtlineare Gleichungen - production

Related subjects » Economic Theory - Population Economics

Table of contents 

0 Overview.- 0.1 Introduction.- 0.2 Main research aims.- 0.3 Outline.- 1 Physical Capital Stock Investments and Labour Demand, Theoretical background on dynamic modelling.- 1.1 Introduction.- 1.2 Entrepreneurial behaviour.- 1.3 Entrepreneurial behaviour under neoclassical assumptions.- 1.3.1 Model 1: Static labour demand.- 1.3.2 Model 2: Dynamic labour demand.- 1.3.3 Model 3: Dynamic physical capital stock and investments demand.- 1.3.4 Model 4: Interrelation in physical capital stock and labour demand.- 1.4 Dynamics and the literature.- 1.4.1 Dynamics in the neoclassical framework.- 1.4.2 q theory of investments.- 1.4.3 Gestation lags.- 1.5 Short summary and extensions.- 1.A Dynamics and interrelation in structures, equipment and labour in six OECD countries.- 2 Investment Gestation Lags, Construction lags, delivery lags and capital stock accumulation.- 2.1 Introduction.- 2.2 Construction lags.- 2.2.1 The construction process.- 2.2.2 The length of the construction period.- 2.2.3 Cancellations.- 2.3 Time-to-build specification.- 2.4 The difference between construction and delivery lags.- 2.5 Statistical evidence on lead times.- 2.6 The calculation of physical capital stock series.- 2.7 Summary and conclusions.- 3 A Closed form Solution for a Model with Time-to-Build and Adjustment Costs, An application to the United States and Dutch manufacturing industry.- 3.1 Introduction.- 3.2 The model.- 3.2.1 A neoclassical factor demand model with time-to-build.- 3.2.2 Economic interpretation of adjustment costs and time-to-build.- 3.3 Three univariate models for structures.- 3.3.1 Model 1: Time-to-build and no adjustment costs.- 3.3.2 Model 2: Time-to-build and adjustment costs of net capital stock.- 3.3.3 Model 3: Time-to-build and adjustment costs of gross investments.- 3.4 The closed form solution of the trivariate model.- 3.5 Summary of the theoretical part and estimation aims.- 3.6 The estimation results.- 3.6.1 The process of prices.- 3.6.2 Maximum likelihood estimates.- Univariate — United States.- Trivariate — The Netherlands and the United States.- 3.6.3 Impulse responses.- 3.6.4 Comparison of the time-to-build and adjustment costs model.- 3.6.5 Summary of the empirical part.- 3.7 Summary and conclusions.- Appendices.- 3.A Solving the Euler equations of the multivariate model for the rational expectations.- 3.B Stationarity tests.- 3.B.1 Unit roots.- 3.B.2 Cointegration.- 3.B.3 Conclusions.- 4 Persistence, Asymmetries and Interrelation in Manufacturing Structures, Equipment and Labour Demand, An application to six OECD countries.- 4.1 Introduction.- 4.2 Descriptive statistics.- 4.3 A neoclassical factor demand model.- 4.3.1 Model specification.- 4.3.2 First order conditions.- 4.4 Empirical analyses.- 4.4.1 Assumptions and estimation strategy.- 4.4.2 Estimation results.- 4.5 Summary and conclusions.- 4.A Factor prices exogeneity, monopolistic competition or price influencing.- 4.A.1 An example.- 4.A.2 Weak exogeneity and Granger causality tests.- 4.A.3 Conclusions.- 5 Interrelations in Physical Capital Stock, Labour and Inventory Investments, An application to French industrial sectors.- 5.1 Introduction.- 5.2 Volatility and multi-cointegration.- 5.3 Two structural models with inventories.- 5.3.1 A production smoothing model.- 5.3.2 A factor demand model with inventories.- 5.3.3 Similarities and differences between the production smoothing and factor demand model.- 5.4 Empirical results.- 5.4.1 GMM estimation results.- 5.4.2 Prices and sales elasticities.- 5.5 Conclusions.- 6 Summary, Conclusions and Shortcomings.- 6.1 Summary.- 6.2 Conclusions from empirical results.- 6.3 Shortcomings.- 6.4 Overall conclusions and some policy implications.- Data Appendix, Quarterly aggregate data.- I.1 Data sources.- I.2 Aggregate manufacturing industry data of six OECD countries.- I.2.1 Variables used as production factors and prices in chapter 3 and 4.- I.2.2 Data description.- I.2.3 Variables used as instruments in chapter 4.- I.3 Aggregate sectorial data of France (1970.I-1992.IV).- I.3.1 Variables used.- I.3.2 Data description.- I.3.3 Calculation of physical capital stock series.- Author Index.- List of Symbols.

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