Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/101792
Authors: 
Smolny, Werner
Year of Publication: 
1992
Series/Report no.: 
Diskussionsbeiträge: Serie II, Sonderforschungsbereich 178 "Internationalisierung der Wirtschaft", Universität Konstanz 175
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.
Subjects: 
Disequilibrium
macroeconomic model
aggregation
micro market
dynamic labour demand
investment
rationing model
Document Type: 
Working Paper

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