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Comment on «Investment, Output and Labor Constraints, and Financial Constraints: the Estimation of a Model with Several Regimes»

Published online by Cambridge University Press:  17 August 2016

Joseph Plasmans
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Abstract

Irrespective of Malinvaud’s theoretical considerations about profitability (see Malinvaud (1980 and 1982)), this paper is, together with a companion article of Gérard and Vanden Berghe (1984), the second paper I am aware of dealing with investment in disequilibrium situations.

The first paper is one of Nishimizu, Quandt and Rosen of Princeton University, entitled; «The Demand and Supply for Investment Goods: Does the Market Clear?», (1980) (not yet published), in which they apply the popular Maddala-Nelson Maximum – Likelihood Procedure (see Maddala and Nelson (1974)) to estimate the model parameters for a postwar quarterly model on Japanese manufacturing data. They specified and estimated a model of the market for investment goods alone, that explicitly incorporated a supply side and that allowed for the possibility that this market might not clear instantaneously. The most striking results were that the long run Japanese supply curve of investment goods is virtually horizontal, and that the Japanese investment market appears to be characterized by equilibrium.

And now comes this second paper, but also allowing for possible rationing on the output, labour and credit markets.

Type
Research Article
Information
Recherches Économiques de Louvain/ Louvain Economic Review , Volume 50 , Issue 1-2 , 1984 , pp. 53 - 57
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 1984 

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Footnotes

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Universities of Antwerp and Tilburg.

References

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