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Dynamic factor demand in a rationing model

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  • Smolny, Werner

Abstract

A dynamic model of the firm is worked out, which pays special attention to a delayed adjustment of employment, investment, and the production technology. A three-step decision structure is assumed, with short-run adjustment of output, medium-run adjustment of employment, and long-run adjustment of the capital stock and capital-labour substitution. Special attention is paid to dynamic inefficiencies like underutilizations of the capital stock and labour hoarding. Market disequilibrium is introduced by allowing for a sluggish adjustment of wages and prices. The model of the firm is complemented by explicit aggregation over firms. The aggregate model is estimated for the FRG.

Suggested Citation

  • Smolny, Werner, 1992. "Dynamic factor demand in a rationing model," Discussion Papers, Series II 175, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    • Handle: RePEc:zbw:kondp2:175
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    References listed on IDEAS

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    Cited by:

    1. Franz, Wolfgang & Smolny, Werner, 1993. "The measurement and interpretation of vacancy data and the dynamics of the Beveridge-curve: The German case," Discussion Papers 4, University of Konstanz, Center for International Labor Economics (CILE).
    2. Franz, Wolfgang & Göggelmann, Klaus & Winker, Peter, 1996. "Ein makroökonometrisches Ungleichgewichtsmodell für die deutsche Volkswirtschaft 1960 bis 1994: Konzeption, Ergebnisse und Erfahrungen," Discussion Papers, Series II 327, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    3. Göggelmann, Klaus & Franz, Wolfgang & Winker, Peter, 1997. "Einige Wirkungen von steuerlichen Umfinanzierungsmaßnahmen in einem makroökonometrischen Ungleichgewichtsmodell für die westdeutsche Volkswirtschaft," ZEW Discussion Papers 97-19, ZEW - Leibniz Centre for European Economic Research.

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