Interrelated Factor Demands from Dynamic Cost Functions: An Application to the Non-energy Business Sector of the UK Economy
AbstractIn this paper we propose a dynamic cost function which allows us consistently to derive a set of dynamic interrelated factor demand equations in the general error correction form introduced by Anderson and Blundell (1982). This paper expands results recently published in Urga (1996). It shows that the derivation of an effective underlying cost function allows us to identify the full set of parameters of the underlying process. This does not happen in the standard Anderson-Blundell formulation. We report an empirical exercise, used to model the so-called "supply side" of the London Business School large-scale economic model, where we estimate both the set of factor demands and the underlying dynamic cost function for the non-energy business sector of the UK economy. Copyright 1999 by The London School of Economics and Political Science
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by London School of Economics and Political Science in its journal Economica.
Volume (Year): 66 (1999)
Issue (Month): 263 (August)
Contact details of provider:
Postal: Houghton Street, London WC2A 2AE
Phone: +44 (020) 7405 7686
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0013-0427
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Lichter, Andreas & Peichl, Andreas & Siegloch, Sebastian, 2014.
"The Own-Wage Elasticity of Labor Demand: A Meta-Regression Analysis,"
IZA Discussion Papers
7958, Institute for the Study of Labor (IZA).
- Lichter, Andreas & Peichl, Andreas & Siegloch, Sebastian, 2014. "The own-wage elasticity of labor demand: A meta-regression analysis," ZEW Discussion Papers 14-016, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Agnolucci, Paolo, 2009. "The effect of the German and British environmental taxation reforms: A simple assessment," Energy Policy, Elsevier, vol. 37(8), pages 3043-3051, August.
- Martin Falk & Bertrand Koebel, 2001.
"A dynamic heterogeneous labour demand model for German manufacturing,"
Taylor & Francis Journals, vol. 33(3), pages 339-348.
- Falk, Martin & Koebel, Bertrand M., 2000. "A dynamic heterogeneous labour demand model for German manufacturing," ZEW Discussion Papers 00-16, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Håvard Hungnes, 2011.
"A demand system for input factors when there are technological changes in production,"
Springer, vol. 40(3), pages 581-600, May.
- Håvard Hungnes, 2008. "A Demand System for Input Factors when there are Technological Changes in Production," Discussion Papers 556, Research Department of Statistics Norway.
- Urga, Giovanni & Walters, Chris, 2003. "Dynamic translog and linear logit models: a factor demand analysis of interfuel substitution in US industrial energy demand," Energy Economics, Elsevier, vol. 25(1), pages 1-21, January.
- Truett, Lila J. & Truett, Dale B., 2002. "The demand for imports in Italy: A production analysis," International Review of Economics & Finance, Elsevier, vol. 11(4), pages 393-409.
- Skjerpen, Terje, 2005. "The dynamic factor demand model revisited: The identification problem remains," Economics Letters, Elsevier, vol. 89(2), pages 157-166, November.
- Everaert, Gerdie & Heylen, Freddy, 2004. "Public capital and long-term labour market performance in Belgium," Journal of Policy Modeling, Elsevier, vol. 26(1), pages 95-112, January.
- Terje Skjerpen, 2004. "The dynamic factor model revisited: the identification problem remains," Discussion Papers 369, Research Department of Statistics Norway.
- McAdam, Peter & Willman, Alpo, 2004. "Production, supply and factor shares: an application to estimating German long-run supply," Economic Modelling, Elsevier, vol. 21(2), pages 191-215, March.
- Tsionas, Efthymios G. & Christopoulos, Dimitris K., 2003. "Cointegration modeling of interrelated factor demands: With an application to labor-import substitution in the European Union," Journal of Macroeconomics, Elsevier, vol. 25(4), pages 509-526, December.
- Willman, Alpo, 2002. "Euro area production function and potential output: a supply side system approach," Working Paper Series 0153, European Central Bank.
- Mc Quinn, Kieran, 2003. "Dynamic Factor Demands in a Changing Economy: An Irish Application," Research Technical Papers 3/RT/03, Central Bank of Ireland.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.