Interrelated Factor Demand Functions.

The purpose of this paper is to integrate empirical investment and employment functions and to link these with capacity considerations, that is, hours of work per man and utilization of capital equipment. Existing time-series employment models assume fixed capital stock, yet estimated labor stock ad...

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Publicado en:American Economic Review Vol. 59; no. 4; pp. 457 - 472
Autores principales: Nadiri, M. Ishag, Rosen, Sherwin
Formato: Artículo
Publicado: American Economic Association Sep69 Part 1 of 2
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Interrelated Factor Demand Functions.
      aug:
        au:
          Nadiri, M. Ishag
          Rosen, Sherwin
        affil:
          Associate Professors, Columbia University
          Associate Professors, University of Rochester
      su:
        Demand function
        Economic demand
        Production functions (Economic theory)
        Mathematical models of economics
        Capital stock
        Elasticity (Economics)
        Economic models
        Labor
      sug:
        subj:
          Demand function
          Economic demand
          Production functions (Economic theory)
          Mathematical models of economics
          Capital stock
          Elasticity (Economics)
          Economic models
          Labor
      ab: The purpose of this paper is to integrate empirical investment and employment functions and to link these with capacity considerations, that is, hours of work per man and utilization of capital equipment. Existing time-series employment models assume fixed capital stock, yet estimated labor stock adjustments are so long as to place this assumption in serious doubt. On the other hand, most investment models treat labor as a completely variable factor, though the employment models would appear to indicate otherwise. Furthermore, few of these models make adequate allowance for variations in utilization rates of labor and capital, and this sometimes makes parameter estimates difficult to interpret. Theoretical considerations suggest mutually interdependent time-series demand functions for labor and capital. This article specifies and estimate a dynamic model for all input demand functions, which allows interactions among these variables over time. The model presents a unified frame- work for interpreting and estimating in- put stock demand functions, the role of utilization rates in these functions and variations in utilization rates themselves. Section I discusses the problem. The model is specified in Section II, and estimates are presented in Section III. These results are compared with some alternative models in Section IV and conclusions are contained in Section V.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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