The Dynamic Demand for Capital and Labor

Matthew Shapiro

No 735, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University

Abstract: A model of the dynamically interrelated demand for capital and labor is specified and estimated. The estimates are of the first-order conditions of the firm's problem rather than of the closed-form decision rules. This use of the first-order conditions allows a random rate of return and a flexible specification of the technology. The estimates do not imply the very slow rates of adjustment displayed in other, related estimates of the demand for capital. Because adjustment is estimated to be rapid, there is, contrary to the standard view, scope for factor-prices to affect investment at relatively high frequencies.

Keywords: Investment; capital; labor demand (search for similar items in EconPapers)
Pages: 34 pages
Date: 1984-01
Note: CFP 650.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in Quarterly Journal of Economics (August 1986), 513-542

Downloads: (external link)
https://cowles.yale.edu/sites/default/files/files/pub/d07/d0735.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
Journal Article: The Dynamic Demand for Capital and Labor (1986)
Working Paper: The Dynamic Demand for Capital and Labor (1986)
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:cwl:cwldpp:735

Ordering information: This working paper can be ordered from
Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA
The price is None.

Access Statistics for this paper

More papers in Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University Yale University, Box 208281, New Haven, CT 06520-8281 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Brittany Ladd ().