Factor demand modelling: the theory and the practice
Since the work of Cobb and Douglas , two main innovations have been introduced in applied factor demand analysis, i.e. the use of flexible functional forms and the modelling of dynamics, expectations, and the interrelatedness of the adjustment process. Recently, cointegration theory has provided an additional important contribution, yielding empirical content to the notion of equilibrium employed in economic analysis, encompassing both the idea of centre of gravity relationship, suggested byClassical economists, and the notion of market-clearing position, employed by Neoclassical economist. Also in the light of the most recent generalizations of the concept of cointegration, allowing for economic attractors changing over time, as the evolution of the structural features of the economy proceeds, this paper critically assess the key theoretical and empirical issues in factor demand analysis.
|Date of creation:||Mar 2007|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +39 011 6706060
Fax: +39 011 6706062
Web page: http://www.esomas.unito.it/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Holly, Sean & Smith, Peter, 1989. "Interrelated factor demands for manufacturing: A dynamic translog cost function approach," European Economic Review, Elsevier, vol. 33(1), pages 111-126, January.
- Hall, Stephen G & O'Sullivan, John, 1994. " Forecasting Economies in Transition: The Case of Romania," Economic Change and Restructuring, Springer, vol. 27(3), pages 175-84.
- Nadiri, M Ishaq & Rosen, Sherwin, 1969. "Interrelated Factor Demand Functions," American Economic Review, American Economic Association, vol. 59(4), pages 457-71, Part I Se.
- Nickell, Stephen, 1985. "Error Correction, Partial Adjustment and All That: An Expository Note," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 47(2), pages 119-29, May.
- Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
When requesting a correction, please mention this item's handle: RePEc:icr:wpicer:9-2007. 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: (Simone Pellegrino)
If references are entirely missing, you can add them using this form.