Factor Prices, Employment and Investment in U.K. and West German Manufacturing

Elias Dinenis and Michael Funke

The Manchester School of Economic & Social Studies, 1994, vol. 62, issue 4, 412-24

Abstract: This paper investigates the empirical performance of a system of investment and employment equations for the U.K. and West German manufacturing sectors. The distinguishing feature of the model is the assumption that firms face adjustment costs in changing the stock of capital and labor and that these costs are interrelated. That makes the employment and investment decisions of the firm interdependent, with employment being determined by investment and vice versa. The empirical implementation of the model for both countries is satisfactory and outperforms a rival model in which employment and investment decisions are made separately. Copyright 1994 by Blackwell Publishers Ltd and The Victoria University of Manchester

Date: 1994
References: Add references at CitEc
Citations: View citations in EconPapers (4)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:manch2:v:62:y:1994:i:4:p:412-24

Access Statistics for this article

More articles in The Manchester School of Economic & Social Studies from University of Manchester Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().