Time-To-Build: Interrelated Investment and Labour Demand Modelling With Applications to Six OECD Countries(420 Lecture Notes in Economics and Mathematical Systems)

As large physical capital stock projects need long periods to be built, a time-to-build specification is incorporated in factor demand models. Time-to-build and adjustment costs dynamics are identified since by the first moving average dynamics, whereas by the latter autoregressive dynamics are induced. Empirical evidence for time-to-build is obtained from data from the Dutch construction industry and by the estimation result from the manufacturing industry of six OECD countries.

Table of Contents:
0 Overview.- 0.1 Introduction.- 0.2 Main research aims.- 0.3 Outline.- 1 Physical Capital Stock Investments and Labour Demand, Theoretical background on dynamic modelling.- 1.1 Introduction.- 1.2 Entrepreneurial behaviour.- 1.3 Entrepreneurial behaviour under neoclassical assumptions.- 1.4 Dynamics and the literature.- 1.5 Short summary and extensions.- 1.A Dynamics and interrelation in structures, equipment and labour in six OECD countries.- 2 Investment Gestation Lags, Construction lags, delivery lags and capital stock accumulation.- 2.1 Introduction.- 2.2 Construction lags.- 2.3 Time-to-build specification.- 2.4 The difference between construction and delivery lags.- 2.5 Statistical evidence on lead times.- 2.6 The calculation of physical capital stock series.- 2.7 Summary and conclusions.- 3 A Closed form Solution for a Model with Time-to-Build and Adjustment Costs, An application to the United States and Dutch manufacturing industry.- 3.1 Introduction.- 3.2 The model.- 3.3 Three univariate models for structures.- 3.4 The closed form solution of the trivariate model.- 3.5 Summary of the theoretical part and estimation aims.- 3.6 The estimation results.- 3.7 Summary and conclusions.- Appendices.- 3.A Solving the Euler equations of the multivariate model for the rational expectations.- 3.B Stationarity tests.- 4 Persistence, Asymmetries and Interrelation in Manufacturing Structures, Equipment and Labour Demand, An application to six OECD countries.- 4.1 Introduction.- 4.2 Descriptive statistics.- 4.3 A neoclassical factor demand model.- 4.4 Empirical analyses.- 4.5 Summary and conclusions.- 4.A Factor prices exogeneity, monopolistic competition or price influencing.- 5 Interrelations in Physical Capital Stock, Labour and Inventory Investments, An application to Frenchindustrial sectors.- 5.1 Introduction.- 5.2 Volatility and multi-cointegration.- 5.3 Two structural models with inventories.- 5.4 Empirical results.- 5.5 Conclusions.- 6 Summary, Conclusions and Shortcomings.- 6.1 Summary.- 6.2 Conclusions from empirical results.- 6.3 Shortcomings.- 6.4 Overall conclusions and some policy implications.- Data Appendix, Quarterly aggregate data.- I.1 Data sources.- I.2 Aggregate manufacturing industry data of six OECD countries.- I.2.1 Variables used as production factors and prices in chapter 3 and 4.- I.2.2 Data description.- I.2.3 Variables used as instruments in chapter 4.- I.3 Aggregate sectorial data of France (1970.I-1992.IV).- I.3.1 Variables used.- I.3.2 Data description.- I.3.3 Calculation of physical capital stock series.- Author Index.- List of Symbols.