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How small firms forecast short-term employment: some survey evidence

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  • John Ashworth
  • Peter Johnson
  • Cheryl Conway

Abstract

The way in which small firms formulate their short-term employment forecasts is examined. Survey evidence based on the experience of some recently formed small businesses located in the North of England is used to test two models of forecast formation. The empirical results suggest that small firms use a linear adaptive model when forecasting.

Suggested Citation

  • John Ashworth & Peter Johnson & Cheryl Conway, 1996. "How small firms forecast short-term employment: some survey evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 3(8), pages 521-524.
    • Handle: RePEc:taf:apeclt:v:3:y:1996:i:8:p:521-524
    DOI: 10.1080/135048596356159
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    References listed on IDEAS

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    1. Davidson, Russell & MacKinnon, James G, 1981. "Several Tests for Model Specification in the Presence of Alternative Hypotheses," Econometrica, Econometric Society, vol. 49(3), pages 781-793, May.
    2. MacKinnon, James G. & White, Halbert & Davidson, Russell, 1983. "Tests for model specification in the presence of alternative hypotheses : Some further results," Journal of Econometrics, Elsevier, vol. 21(1), pages 53-70, January.
    3. Risseeuw, Peter & Masurel, Enno, 1994. "The Role of Planning in Small Firms: Empirical Evidence from a Service Industry," Small Business Economics, Springer, vol. 6(4), pages 313-322, August.
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