On the Endogeneity of Output in Dynamic Labour-Demand Models

Cees Gorter, Wolter Hassink, Peter Nijkamp and Eric Pels

Empirical Economics, 1997, vol. 22, issue 3, 393-408

Abstract: This paper investigates the endogeneity of output in the context of the standard dynamic labour-demand model. Using a panel of Dutch firms we find that the assumption of endogeneity of output cannot be rejected, so that an adjusted procedure has to be followed in which information on the output expectations of entrepreneurs is used. The estimated effect of the endogenous, current output variable on employment appears to be significantly larger than the effect of the exogenous, expected output variable. The adjustment parameter of employment is however, remarkably robust against distinct specifications for output. Coauthors are Wolter Hassink, Peter Nijkamp, and Eric Pels.

Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (6)

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

Related works:
Chapter: On the Endogeneity of Output in Dynamic Labour-Demand Models (2004)
Working Paper: On the endogeneity of output in dynamic labour-demand models (1996)
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:spr:empeco:v:22:y:1997:i:3:p:393-408

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().