Hostname: page-component-78c5997874-s2hrs Total loading time: 0 Render date: 2024-11-08T11:31:12.996Z Has data issue: false hasContentIssue false
  • English
  • Français

Issues and Methods in Estimating Adjustment Costs

Published online by Cambridge University Press:  10 May 2017

Larry Karp  and
Richard Shumway
Larry Karp
Affiliation:
Department of Agricultural and Resource Economics, University of California, Berkeley
Richard Shumway
Affiliation:
Department of Agricultural Economics, Texas A&M University
Get access

Extract

The practice of econometrics entails choosing which equations to include in a system, and which equations to inclue in a system, and what restrictions to impose on the parameters. There is a widespread, but not universally held, preference for making these choices on the basis of theory. Until recently, this theory has rested on the hypothesis that agents solve static optimization problems. For agents’ behavior to be consistent with this story, certain restrictions must hold. These restrictions are used in econometric models as maintained or testable hypotheses.

Type
AAEA/NAREA Invited Session: Dynamic Supply Response and Agricultural Investment
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 13 , Issue 2 , October 1984 , pp. 155 - 162
Copyright
Copyright © 1984 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Bernstein, Jeffrey I. and Nadiri, M. Ishaq, “Research and Development, Spillovers and Adjustment Costs: An Application of Dynamic Duality at the Firm Level.” Paper presented at Econometric Society meeting. San Francisco, December 28-30, 1983.Google Scholar
Blackorby, Charles and Schworm, William. “Aggregate Investment and Consistent Intertemporal Technologies.” Review of Economic Studies XLIX (1982):595–614.Google Scholar
Blanchard, Olivier J. “The Production and Inventory Behavior of the American Automobile Industry.” Journal of Political Economy 91 (1983):365–400.Google Scholar
Chow, Gregory C. Econometric Analysis by Control Methods. New York: John Wiley and Sons, 1981.Google Scholar
Craine, Roger. “Investment, Adjustment Costs and Uncertainty.” International Economic Review 16 (1975):648–661.Google Scholar
Dhrymes, Phoebus J. Mathematics for Econometrics. New York: Springer Verlag, 1978.Google Scholar
Epstein, Larry G. “Duality Theory and Functional Forms for Dynamic Factor Demands.” Review of Economic Studies XLVIII (1981):81–95.Google Scholar
Epstein, Larry G. and Denny, Michael G. S. “The Multivariate Flexible Accelerator Model: Its Empirical Restrictions and an Application to U.S. Manufacturing.” Econometrica 51 (1983):647–674.Google Scholar
Hansen, Lars Peter and Sargent, Thomas J. “Formulating and Estimating Dynamic Linear Rational Expectations Models.” Journal of Economic Dynamics and Control 2 (1980):7–46.Google Scholar
Hansen, Lars Peter and Singleton, Kenneth J. “Generalized Instrumental Variables Estimation of Nonlinear Rational Expectations Models.” Econometrica 50 (1982):1269–1286.Google Scholar
Hayashi, Fumio. “Estimation of Macroeconometric Models Under Rational Expectations: A Survey.” Discussion Paper No. 444. Department of Economics, Northwestern University, October 1980.Google Scholar
Hayashi, Fumio. “Tobin's Marginal q and Average q: A Neoclassical Interpolation.” Econometrica 50 (1982):213–224.Google Scholar
Jameson, Antony and Kreindler, Eliezer. “Inverse Problem of Linear Optimal Control.” SIAM Journal of Control 11 (1973):1–19.Google Scholar
Karp, Larry. “On Estimating Dynamic Cost of Adjustment.” Manuscript, Texas A&M University, 1984.Google Scholar
Lucas, Robert E. “Econometric Policy Evaluation: A Critique, in the Phillips Curve and Labor Markets.” Carnegie-Rochester Conference on Public Policy, ed. Brunner, K. and Meltzer, A. H. North Holland, Amsterdam, 1976.Google Scholar
McLaren, Keith R. and Cooper, Russel J. “Intertemporal Duality: Application to the Theory of the Firm.” Econometrica 48 (1980):1755–1763.Google Scholar
Pindyck, Robert S. and Rotenberg, Julio J. “Dynamic Factor Demands and the Effects of Energy Price Shocks.” American Economic Review 73 (1983):1066–1079.Google Scholar
Sargent, Thomas J. “Estimation of Dynamic Labor Demand Schedules under Rational Expectations.” Journal of Political Economy 86 (1978):1009–1044.Google Scholar
Sims, Christopher A. “Policy Analysis with Econometric Models.” Brookings Papers on Economic Activity, Brainard, William C. and Perry, George L., Editors. Washington, D.C., The Brookings Institute, 1982.Google Scholar
Vasavada, Utpal and Chambers, Robert G. “Testing Empirical Restrictions of the Multivariate Flexible Accelerator in a Model of U.S. Agricultural Investment.” Presented at Summer Meetings of American Association of Agricultural Economics, 1983.Google Scholar