Dynamic Factor Demand in a Rationing Context

Theory and Estimation of a Macroeconomic Disequilibrium Model for the Federal Republic of Germany

  • Werner Smolny

Part of the Studies in Contemporary Economics book series (CONTEMPORARY)

Table of contents

  1. Front Matter
    Pages i-viii
  2. Introduction

    1. Werner Smolny
      Pages 1-6
  3. Theory

    1. Front Matter
      Pages 7-7
    2. Werner Smolny
      Pages 9-53
    3. Werner Smolny
      Pages 54-83
    4. Werner Smolny
      Pages 84-103
    5. Werner Smolny
      Pages 104-128
  4. Empirical estimation

    1. Front Matter
      Pages 129-129
    2. Werner Smolny
      Pages 131-160
    3. Werner Smolny
      Pages 161-217
  5. Conclusion

    1. Werner Smolny
      Pages 218-220
  6. Back Matter
    Pages 221-243

About this book


A macroeconomic disequilibrium model is developed for the Federal Republic of Germany. Starting with a microeconomic model of firm's behaviour, the optimal dynamic adjustment of employment and investment is derived. The model of the firm is complemented by an explicite aggregation procedure which allows to derive macroeconomic relations. The model is estimated with macroeconomic data for the Federal Republic of Germany. An important feature is the consistent introduction of dynamic adjustment into a model of the firm. A new method is the particular approach of a delayed adjustment of employment and investment. The estimation results show significant underutilizations of labour and capital and indicate the importance of supply constraints for imports and exports. As the most prominent result, they reveal the importance of the slow adjustment of employment and investment for the macroeconomic situation in Germany and especially for the persistence of high unemployment in the eighties.


Disequilibrium Model Econometrics Keynes Macroeconomics Makroökonomie Ungleichgewichtsmodell Ökonometrie

Authors and affiliations

  • Werner Smolny
    • 1
  1. 1.Faculty of Economics and StatisticsUniversity of KonstanzKonstanzGermany

Bibliographic information

  • DOI
  • Copyright Information Physica-Verlag Heidelberg 1993
  • Publisher Name Physica-Verlag HD
  • eBook Packages Springer Book Archive
  • Print ISBN 978-3-7908-0712-7
  • Online ISBN 978-3-642-51512-5
  • Series Print ISSN 1431-8806
  • Buy this book on publisher's site