A Vintage Model of the Demand for Energy and Employment in Australian Manufacturing Industry.

Previous studies by the author, (1975, Chapter 6) and (1977), have investigated the demand for employment and three categories of energy consumption, using temporal data for individual subclasses in Australian manufacturing industry. It was assumed that factor demands were determined by minimizing c...

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Publicado en:Review of Economic Studies Vol. 45; no. 3; pp. 479 - 495
Autor principal: Hawkins, R.G.
Formato: Artículo
Publicado: Oxford University Press / USA Oct78
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: A Vintage Model of the Demand for Energy and Employment in Australian Manufacturing Industry.
      aug:
        au: Hawkins, R.G.
        affil: Australian National University
      su:
        Energy consumption
        Employment
        Labor market
        Economic demand
        Industries
        Econometric models
        Manufacturing industries
        Manufactured products
        Australia
      sug:
        subj:
          Australia
          Energy consumption
          Employment
          Labor market
          Economic demand
          Industries
          Econometric models
          Manufacturing industries
          Manufactured products
      ab: Previous studies by the author, (1975, Chapter 6) and (1977), have investigated the demand for employment and three categories of energy consumption, using temporal data for individual subclasses in Australian manufacturing industry. It was assumed that factor demands were determined by minimizing costs subject to given levels of output and factor prices. Simple log-linear demand functions were estimated, with separate Koyck lags for each factor. The results were varied, but generally exhibited strong output effects and weak price effects, with average lags of about a year. Most importantly, the restrictions on coefficients, implied by the explicitly additive Cobb-Douglas production function and the implicitly additive Constant Difference Elasticity of Substitution function, Hanoch (1975), were generally rejected statistically. These findings suggest that the adjustment process should be generalized to allow different speeds of response to changes in output and relative prices, and less restrictive forms chosen for the production function. The "putty-clay" vintage model, Johansen (1959) and Salter (1960), offers an appropriate generalization of the adjustment process and is adopted in this paper. It allows the speed of response to changes in output to differ from that to relative prices, and for a faster response to decreases in output than to increases. In addition, its application allows a contribution to be made to the continuing debate concerning the validity of the vintage model of production.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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