Dynamic Factor Demand in a Rationing Context: Theory and Estimation of a Macroeconomic Disequilibrium Model for the Federal Republic of Germany - Brossura

Smolny, Dr. Werner

Brossura

ISBN 10: 3790807125 ISBN 13: 9783790807127

Casa editrice: Springer, 1993

Riassunto

A macroeconomic disequilibrium model is developed for theFederal Republic of Germany. Starting with a microeconomicmodel of firm's behaviour, the optimal dynamic adjustment ofemployment and investment is derived. The model of the firmis complemented by an explicite aggregation procedure whichallows to derive macroeconomic relations. The model isestimated with macroeconomic data for the Federal Republicof Germany.An important feature is the consistent introduction ofdynamic adjustment into a model of the firm. A new method isthe particular approach of a delayed adjustment ofemployment and investment.The estimation results show significant underutilizations oflabour and capital and indicate the importance of supplyconstraints for imports and exports. As the most prominentresult, they reveal the importance of the slow adjustment ofemployment and investment for the macroeconomic situation inGermany and especially for the persistence of highunemployment in the eighties.

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Contenuti

I Theory.- 1 Disequilibrium models.- 1.1 Recent developments in Keynesian macroeconomics.- 1.2 Microfoundations of wage and price rigidity.- 1.2.1 The rigidity of prices.- 1.2.2 The stickiness of wages.- 1.2.3 Theories of wage and price change.- 1.3 Fix-price models.- 1.4 Dynamic factor demand.- 1.4.1 Theoretical and empirical work on adjustment costs.- 1.4.2 Specification of adjustment costs.- 1.4.3 The role of time for adjustment.- 2 The basic model.- 2.1 Assumptions.- 2.1.1 Wages, prices, and capital costs.- 2.1.2 The concept of micro-markets.- 2.1.3 The dynamic decision structure.- 2.2 The optimization program of the firm.- 2.2.1 Output.- 2.2.2 Employment.- 2.2.3 The investment decision.- 2.2.3.1 The optimal capital stock.- 2.2.3.2 The derivation of the optimal capital-labour ratio.- 2.3 Regimes on the goods and labour market.- 2.4 Appendix A.- 2.5 Appendix B: list of symbols.- 3 Extensions of the basic model.- 3.1 Overtime working.- 3.2 Dynamic input adjustment.- 3.2.1 Dynamic adjustment of employment.- 3.2.2 Investment and capital-labour substitution.- 3.3 Endogenous wages and prices.- 4 The aggregation of micro-markets.- 4.1 The distribution of micro-markets.- 4.2 Derivation of the CES-property.- 4.3 The quality of the CES-approximation.- II Empirical estimation.- 5 Specification of the model.- 5.1 The recursive structure.- 5.2 The treatment of expectations.- 5.3 The choice of technique.- 5.4 Calculation of demand ― the trade equations.- 5.5 Estimation of the minimum conditions.- 5.5.1 Determination of output.- 5.5.2 Labour demand and employment.- 5.6 The demand for capital.- 5.7 Appendix C: data sources and definitions.- 6 Results.- 6.1 Capital-labour substitution.- 6.2 Trade.- 6.3 Output and overtime working.- 6.4 Employment.- 6.5 Capital formation.- Conclusion.

Product Description

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Dettagli dell'edizione

• Editore: Springer
• Data di pubblicazione: 1993
• Lingua: Inglese
• ISBN 10: 3790807125
• ISBN 13: 9783790807127
• Rilegatura: Copertina flessibile
• Numero di pagine: 252
• Contatto del produttore: non disponibile
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