Technology shocks and cointegration in quadratic models of the firm.
In two quadratic models of a firm, it is shown that if the firm's production function is not separable in its arguments, then the presence of any unit root technology shock will prevent factor inputs from being cointegrated with input prices. Absent integrated technology shocks, there will be one c...
| Publicado en: | International Economic Review Vol. 36; pp. 5 - 18 |
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| Formato: | Artículo |
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Wiley-Blackwell
February 1995
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| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | In two quadratic models of a firm, it is shown that if the firm's production function is not separable in its arguments, then the presence of any unit root technology shock will prevent factor inputs from being cointegrated with input prices. Absent integrated technology shocks, there will be one cointegrating vector for every quasi-fixed factor held by the firm, thereby providing one possible rationale for multiple cointegrating vectors in multivariate time series systems. The parameters of these cointegrating vectors may be used to recover the parameters of the static factor demand functions obeyed by the firm. Reprinted by permission of the publisher. |
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