Dynamic factor demand and irreversible adjustment in the Spanish milk sector
The accession of Spain to the European Economic Community, now the European Union, entailed major changes for the milk sector. We try to determine whether the structural adjustment processes of the firm triggered by the changing environment present irreversibilities using a adjustment costs dual model. We modify the model proposed by Chang and Stefanou (1988) in order to incorporate a theoretically more robust treatment of the zero-investment regime in quasi-fixed factors. The empirical analysis reveals that strong irreversibilities are present in the adjustment processes: speeds of adjustment are distinct in investment and disinvestment processes, and there are zero-investment regimes. Copyright Springer-Verlag Berlin/Heidelberg 2005
Volume (Year): 7 (2005)
Issue (Month): 4 (December)
|Contact details of provider:|| Web page: http://www.springer.com|
Postal:Universidad del País Vasco; DFAE II; Avenida Lehendakari Aguirre, 83; 48015 Bilbao; Spain
Phone: +34 94 6013783
Fax: + 34 94 6013774
Web page: http://spaneconrev.org/
More information through EDIRC
|Order Information:||Web: http://www.springer.com/economics/journal/10108?detailsPage=societies|
When requesting a correction, please mention this item's handle: RePEc:spr:specre:v:7:y:2005:i:4:p:289-306. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.