Empirical Econometric Model of an Enterprise

Wiśniewski Jerzy Witold ()
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Wiśniewski Jerzy Witold: Nicolaus Copernicus University in Torun, Department of Econometrics and Statistics, Gagarina 13A, 87-100 Toruń, Poland

Folia Oeconomica Stetinensia, 2016, vol. 16, issue 1, 232-247

Abstract: This work will present an empirical econometric model describing an enterprise within the category of medium-sized companies (according to European Union classification). The company, code-named ENERGY, carries out a manufacturing, commercial, and service business activity. The statistical data used was in the form of quarterly time series, containing 24 statistical observations from the years 2008–2013. A hypothetical model of the enterprise is a system of interdependent equations.The econometric model is composed of seven stochastic equations. The empirical model is missing the equation describing investments in the enterprise. It results from the fact, that during the years 2008–2013 the company suffered meagre investments. Investment output equation, therefore, does not provide any relevant systemic information for the management, since most statistical information in the time series assumes zero values. An empirical model of the company ENERGY is a system of interdependent equations, with statistically significant feedback between labour efficiency (EFEMP) and the average pay per 1 employee (APAY). Additionally, there is recurrence of the relationships between the fixed assets (FIXAS), employment volume (EMP), and the size of the net sales income (SNET).The empirical equations of the model are characterized by a description accuracy of individual endogenous variables. The model also has good decision-making and forecasting qualities.

Keywords: econometric micromodel; microeconometrics; empirical model; enterprise; production (search for similar items in EconPapers)
JEL-codes: C30 C32 C51 C53 D24 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:foeste:v:16:y:2016:i:1:p:232-247:n:15

DOI: 10.1515/foli-2016-0015

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