Dynamic Factor Demands and Technology Measurement under Arbitrary Expectations

Pierre Lasserre and Pierre Ouellette

No 9908, Cahiers de recherche du Département des sciences économiques, UQAM from Université du Québec à Montréal, Département des sciences économiques

Abstract: We present a dynamic model of factor demands based on expected discounted costs min-imization. While making only very mild assumptions on expectations and technology, we are able to establish a duality relationship between contemporary factor demands and the technology, and we provide formula for easily recovering marginal products, returns to scale, and technological change from estimated factor demands. Parametrization and implementation are illustrated in a detailed example.

Nous présentons un modèle dynamique de demande de facteurs de production basé sur un comportement de minimisation de l'espérance des coûts cumulatifs actualisés. Sous des hypothèses peu restrictives sur les anticipations et la technologie, nous établissons une relation de dualité entre les demandes courantes de facteurs et la technologie. Produits marginaux, rendements d'échelle et progrès technologique peuvent se calculer simplement à partir des demandes de facteurs. Nous illustrons à travers un exemple détaillé une façon de paramétriser et d'appliquer le modèle.

Keywords: Dynamic duality; Investment; Expectations; Expected future cost function; Factor demands; Returns to scale; Technological change - Dualité dynamique; Investissement; Anticipations; Demandes de facteurs de production; Rendements d'échelle; Progrès technique. (search for similar items in EconPapers)
Pages: 37
Date: 1999-08
New Economics Papers: this item is included in nep-mic
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Citations: View citations in EconPapers (10)

Published in Journal of Productivity Analysis; 11(3), June 1999, pages 219-41.

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Related works:
Journal Article: Dynamic Factor Demands and Technology Measurement under Arbitrary Expectations (1999)
Working Paper: Dynamic Factor Demands and Technology Measurement Under Arbitrary Expectations (1995)
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