A macroeconomic disequilibrium model is developed for the Federal Republic of Germany. Starting with a microeconomic model of firm's behaviour, the optimal dynamic adjustment of employment and investment is derived. The model of the firm is complemented by an explicite aggregation procedure which allows to derive macroeconomic relations.
The model is estimated with macroeconomic data for the Federal Republic of Germany. An important feature is the consistent introduction of dynamic adjustment into a model of the firm. A new method is the particular approach of a delayed adjustment of employment and investment.
The estimation results show significant underutilizations of labour and capital and indicate the importance of supply constraints for imports and exports. As the most prominent result, they reveal the importance of the slow adjustment of employment and investment for the macroeconomic situation in Germany and especially for the persistence of high unemployment in the eighties.
| ISBN: | 9783790807127 |
| Publication date: | 30th September 1993 |
| Author: | Werner Smolny |
| Publisher: | Physica an imprint of Physica-Verlag HD |
| Format: | Paperback |
| Pagination: | 242 pages |
| Series: | Studies in Contemporary Economics |
| Genres: |
Economic theory and philosophy |
A macroeconomic disequilibrium model is developed for the Federal Republic of Germany. Starting with a microeconomic model of firm's behaviour, the optimal dynamic adjustment of employment and investment is derived.
Dynamic Factor Demand in a Rationing Context features in the following genres: Economic theory and philosophy
Paperback. Not Available.
Dynamic Factor Demand in a Rationing Context was written by Werner Smolny and published by Physica an imprint of Physica-Verlag HD
Dynamic Factor Demand in a Rationing Context has 242 pages
Yes it is part of Studies in Contemporary Economics series