Premium
A QUARTERLY ECONOMETRIC MODEL OF FACTOR DEMANDS IN REGIONAL MANUFACTURING
Author(s) -
Hanseman Dennis J.
Publication year - 1986
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.1467-9787.1986.tb00337.x
Subject(s) - disequilibrium , generalization , economics , econometrics , econometric model , dynamic factor , capital (architecture) , variety (cybernetics) , statistics , mathematics , geography , medicine , mathematical analysis , archaeology , ophthalmology
This paper presents a model of demand for factor inputs in regional manufacturing industry. Demands for labor and capital are distinguished from demands for factor services using a generalization of the disequilibrium adjustment framework of Nadiri and Rosen. The generalization allows for a richer variety of responses to external shocks and involves the distinction between systematic and error dynamics. The model is estimated for the period 1963:I‐1980:I using data from the Cincinnati SMSA and appropriate econometric techniques. Substantial attention is paid to the dynamic response of the estimated equations.