Skip to main content
SpringerLink
Log in
Book cover

Macroeconometric Models pp 315–346Cite as

The Models of the Enterprise Sector

  • Chapter

  • 2691 Accesses

Part of the book series: Advanced Studies in Theoretical and Applied Econometrics ((ASTA,volume 47))

Abstract

The production function concept is introduced. Maximizing the surplus under the imperfect competition is the point of departure for constructing a system of equations explaining the demand for production factors, producer prices and wages.

The demand for fixed capital function is transferred into the demand for investment function. The demand for employment is linked to the demand for working hours. The producer prices depend on unit costs of fabrication and on profits reacting to the demand gap. Real wages are result of negotiations between entrepreneurs and employees depend on the unemployment rate.

Potential productions depends on total factor productivity, being affected by the domestic and foreign cumulative R&D and by human capital. The impact of knowledge capital is shown.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Notes

  1. 1.

    Following the DSGE models typology they are the components of the sector of domestic producers of intermediate goods.

References

  • Barro, R. J., & Lee, J. W. (1996). International measures of schooling years and schooling quality. American Economic Review, Papers and Proceedings, 86(2), 218–223.

    Google Scholar 

  • Bayoumi, T., Coe, D. T., & Helpman, E. (1999). R&D spillovers and global growth. Journal of International Economics, 47, 399–428.

    Article  Google Scholar 

  • Beffy, P.-O., Bonnet, X., Paries, M. D., & Montfort, B. (2003). MZE: a small macro-model for the Euro area (Document de travail, G 2003/11). Paris: INSEE.

    Google Scholar 

  • Benabou, R. (2002). Human capital, technical change and the welfare state (Temi di Discussione del Servizio Studi 465). Roma: Banca d’Italia.

    Google Scholar 

  • Benhabib, J., & Spiegel, M. (1994). The role of human capital in economic development, evidence from aggregate cross-country data. Journal of Monetary Economics, 34(2), 143–174.

    Article  Google Scholar 

  • Borensztein, E., De Gregorio, J., & Lee, J. W. (1998). How does foreign direct investment affect economic growth. Journal of International Economics, 45, 115–135.

    Article  Google Scholar 

  • Brainard, W. C., & Tobin, J. (1968). Pitfalls in financial model building. American Economic Review, 58, 99–122.

    Google Scholar 

  • Chirinko, R. S. (1992). Business fixed investment spending: a critical survey of modeling strategies, empirical results, and policy implications (Working Paper No. 27). Munich: Center for Economic Studies, University of Munich.

    Google Scholar 

  • Chirinko, R. S., & Fazzari, S. M. (1988). Tobin’s Q, non-constant returns to scale, and imperfectly competitive product markets. Recherches Economiques de Louvain, 54, 259–279.

    Google Scholar 

  • Cincera, M., & van Pottelsberghe de la Potterie, B. (2001). International R&D spillovers: a survey. Cahiers Economiques de Bruxelles, 169(1), 1–20.

    Google Scholar 

  • Coe, D. T., & Hoffmaister, A. W. (1999). Are there international R&D spillovers among randomly matched trade partners? A response to Keller (Working Paper). International Monetary Fund.

    Google Scholar 

  • Coe, D. T., & Helpman, E. (1995). International R&D spillovers. European Economic Review, 39, 859–887.

    Article  Google Scholar 

  • Cohen, D., & Soto, M. (2001). Growth and human capital: good data, good results (CEPR Discussion Paper No. 3025).

    Google Scholar 

  • Collechia, A., & Schreyer, P. (2002). ICT investment and economic growth in the 1990s’: is the United States a unique case? A comparative study of nine OECD countries. Review of Economic Dynamics, 5, 408–442.

    Article  Google Scholar 

  • Courbis, R. (1977). Les modeles de prix. Pour la prevision et la planification etude comparative. Paris: Dunod.

    Google Scholar 

  • Crispolti, V., & Marconi, D. (2005). Technology transfer and economic growth in developing countries: an econometric analysis (Temi di Discussione del Servizio Studi 564). Roma: Bank of Italy.

    Google Scholar 

  • de la Fuente, A., & Domenech, R. (2000). Human capital in growth regressions: how much differences does data quality make (Working Paper No. 262). OECD, Economics Department.

    Google Scholar 

  • de la Fuente, A. (2004). Human capital and growth: some results for the OECD. In Proceedings of OeNB workshops: Vol. 2. Current issues of economic growth.

    Google Scholar 

  • Delessy, H., Sterdyniak, H., et al. (1996). The new version of MIMOSA, a macroeconomic model of the world economy (version 1995) (Mimosa Team No. 96-01). CEPII/OFCE.

    Google Scholar 

  • Deutsche Bundesbank (2000). Macro-econometric multi-country model MEMMOD (Mimeo). Frankfurt/Main: Deutsche Bundesbank.

    Google Scholar 

  • Dramais, A., Roeger, W., & in’t Veld, J. (1997). QUEST II. A multi-country business cycle and growth model (Mimeo). Paper presented at the Project LINK meeting, Malaysia. European Commission.

    Google Scholar 

  • Dreger, C., & Marcellino, M. (2007). A macroeconometric model for the Euro economy. Journal of the Policy Modelling, 29, 1–13.

    Article  Google Scholar 

  • Eaton, J., & Kortum, S. (1996). Trade in ideas, patenting and productivity in the OECD. Journal of International Economics, 40, 251–278.

    Article  Google Scholar 

  • Eisner, R., & Strotz, R. H. (1963). Determination of business investment. In Commission on Money and Credit, Impacts of monetary policy. Englewood Cliffs: Prentice Hall.

    Google Scholar 

  • Engelbrecht, H. J. (1997). International spillovers, human capital and productivity in OECD economies. An empirical investigation. European Economic Review, 41, 1479–1488.

    Article  Google Scholar 

  • Engelbrecht, H. J. (2002). Human capital and international knowledge spillovers in TFP growth of a sample of developing countries: an exploration of alternative approaches. Applied Economics, 34, 831–841.

    Article  Google Scholar 

  • Evans, M. K., & Klein, L. R. (1968). The Wharton econometric forecasting model (2nd enlarged ed.). Philadelphia: Economics Research Unit, University of Pennsylvania.

    Google Scholar 

  • Fagan, G., Henry, J., & Mestre, R. (2005). An area-wide model for the Euro-area. Economic Modelling, 22, 139–159.

    Article  Google Scholar 

  • Fair, R. C. (2004). Estimating how the macroeconomy works. Cambridge: Harvard University Press.

    Google Scholar 

  • Florczak, W. (2009). Modelowanie kapitału ludzkiego i struktura ludności (Modelling human capital and population composition). In W. Welfe (Ed.), Makroekonomiczny model gospodarki opartej na wiedzy (pp. 241–279). Acta UŁ, Folia oeconomica, 229. Łódź: Wydawnictwo UŁ.

    Google Scholar 

  • Florczak, W., & Welfe, W. (2000). Wyznaczanie potencjalnego PKB, łącznej produktywności czynników produkcji (Potential GDP and TFP determination). Gospodarka Narodowa, 11–12, 10–55.

    Google Scholar 

  • Grzęda Latocha, R. (2005). Ekonometryczna analiza koniunktury gospodarczej w krajach strefy Euro (Econometric analyses of business cycle in the Euro-area). Ekonomista, 5, 621–643.

    Google Scholar 

  • Harrison, R., Nikolov, K., Quinn, M., Ramsay, G., Scott, A., & Thomas, R. (2005). The Bank of England quarterly model (Mimeo). Bank of England.

    Google Scholar 

  • Jaffe, A. B. (1986). Technological opportunity and spillovers of R&D: evidence from firms patent, profits and market values. American Economic Review, 76, 984–1001.

    Google Scholar 

  • Jorgenson, D. W. (1965). Anticipation and investment behaviour. In J. G. Duessenberry et al. (Eds.), The Brookings quarterly econometric model of the United States (pp. 35–92). Chicago and Amsterdam: Mc Nally & Co. and North-Holland.

    Google Scholar 

  • Jorgenson, D. W. (2000). Information technology and the US economy. American Economic Review, 91, 1–32.

    Article  Google Scholar 

  • Jorgenson, D. W., & Stiroh, K. J. (2000). Raising the speed limits: US economy growth in the information age. Brookings Papers on Economic Activity, 1, 125–211.

    Article  Google Scholar 

  • Jorgenson, D. W., Ho, M. S., & Stiroh, K. J. (2003). Lessons from the US growth resurgence. Journal of Policy Modeling, 25, 453–470.

    Article  Google Scholar 

  • Keller, W. (2004). International technology diffusion. Journal of Economic Literature, 42, 752–782.

    Article  Google Scholar 

  • Klein, L. R. (1966). Studies in quantitative economics: Vol. 1. The Wharton index of capacity utilization. Philadelphia: University of Pennsylvania.

    Google Scholar 

  • Klein, L. R., & Goldberger, A. S. (1955). An econometric model of the United States, 1929–1952. Amsterdam: North-Holland.

    Google Scholar 

  • Klein, L. R., Welfe, A., & Welfe, W. (1999). Principles of macroeconometric modeling. Amsterdam: North-Holland.

    Google Scholar 

  • Koyck, L. M. (1954). Distributed lags and investment analysis. Amsterdam: North-Holland.

    Google Scholar 

  • Krueger, A., & Lindahl, M. (2001). Education for growth: why and for whom? Journal of Economic Literature, 39, 1101–1136.

    Article  Google Scholar 

  • Laxton, D., Isard, P., Faruqee, H., Prasad, E., & Turlelboom, B. (1998). MULTIMOD MARK III: the core dynamic and steady state models (IMF Occasional Papers No. 164).

    Google Scholar 

  • Layard, P. R. G., & Nickell, S. J. (1985). The causes of British unemployment. National Institute Economic Review, 111, 62–85.

    Article  Google Scholar 

  • Layard, P. R. G., Nickell, S. J., & Jackman, R. (1991). Unemployment: macroeconomic performance and the labour market. Oxford: Oxford University Press.

    Google Scholar 

  • Lee, G. (2005). Direct versus indirect international R&D spillovers. Information Economics and Policy, 17, 334–348.

    Article  Google Scholar 

  • Lichtenberg, F. R., & van Pottelsberghe de la Potterie, B. (1998). International R&D spillovers, a comment. The European Economic Review, 42, 1483–1491.

    Article  Google Scholar 

  • Lucas, R. E. Jr. (1967). Optimal investment policy and the flexible accelerator. International Economic Review, 8, 78–85.

    Article  Google Scholar 

  • Mac Garvie, M. (2005). The determinants of international knowledge diffusion measured by patent citations. Economic Letters, 87, 121–126.

    Article  Google Scholar 

  • Nehru, V., Swanson, E., & Dubey, A. (1995). New data base on human capital stocks in developing and industrial countries: sources, methodology and results. Journal of Development Economics, 46, 379–402.

    Article  Google Scholar 

  • Nickell, S. J. (1984). The modelling of wages and employment. In D. H. Hendry & K. F. Wallis (Eds.), Econometrics and quantitative economics. Oxford: Basil Blackwell.

    Google Scholar 

  • Phillips, A. W. (1958). The relation between unemployment and the rate of change of money wage rates in the United Kingdom, 1961–1957. Economica, 25(4), 283–299.

    Google Scholar 

  • Richards, R. G. (2000). Endogenous technological advance in an econometric model (Implications for productivity and potential output in the United States). Economic Modelling, 17, 13–34.

    Article  Google Scholar 

  • Roeger, W., & in’t Veld, J. (1997). QUEST II. A multicountry business cycle and growth model (Economic Papers No. 123). European Commission.

    Google Scholar 

  • Saggi, K. (2000). Trade, foreign direct investment and international technology transfer: a survey (World Bank, Policy Research Papers, 2379).

    Google Scholar 

  • Smets, F., & Wouters, R. (2003). An estimated dynamic stochastic general equilibrium model of the Euro area. Journal of the European Economic Association, 1, 1123–1175.

    Article  Google Scholar 

  • Smith, K. (2002). What is the knowledge economy: knowledge intensity and distributed knowledge bases (Discussion Paper 2002-6). Maastricht: The UN University, INTECH.

    Google Scholar 

  • Solow, R. (1957). Technical change and aggregate production function. Review of Economics and Statistics, 39, 312–320.

    Article  Google Scholar 

  • Solow, R. (1962). Technical progress, capital formation and economic growth. American Economic Review, 52, 76–86.

    Google Scholar 

  • Soto, M. (2001). Growth and human capital: good data, good results (CEPR Discussion Paper No. 3025).

    Google Scholar 

  • Tobin, J. (1969). A general equilibrium approach to monetary theory. Journal of Money, Credit and Banking, 1, 15–29.

    Article  Google Scholar 

  • Tobin, J. (1972). The wage-price mechanism: overview of the conference. In O. Eckstein (Ed.), The econometrics of price determination conference. Washington: Federal Reserve System.

    Google Scholar 

  • Treadway, A. B. (1969). On rational entrepreneurial behavior and the demand for investment. The Review of Economic Studies, 36, 227–239.

    Article  Google Scholar 

  • Van Leeuwen, G., & Van der Wiel, H. (2003). Spillovers effects of ICT. CBP Report, 3, 24–40.

    Google Scholar 

  • Van Pottelsberghe de la Potterie, B., & Lichtenberg, F. R. (2001). Does foreign direct investment transfer technology across borders? Review of Economics and Statistics, 83, 490–497.

    Article  Google Scholar 

  • Wallis, K. F., Fisher, P. G., Longbottom, J. A., Turner, D. S., & Whitley, J. D. (1987). Models of the UK economy: a fourth review by the ESRC Macromodelling Bureau. Oxford: Oxford University Press.

    Google Scholar 

  • Welfe, A. (1993). Inflacja i rynek (Inflation and markets). Warszawa: PWE.

    Google Scholar 

  • Welfe, W. (1992). Ekonometryczne modele gospodarki narodowej Polski (Econometric models of Poland’s national economy). Warszawa: PWE.

    Google Scholar 

  • Welfe, W. (2000). Empiryczne modele wzrostu gospodarczego (Empirical models of economic growth). Ekonomista, 4, 483–499.

    Google Scholar 

  • Welfe, W. (Ed.) (2001). Ekonometryczny model wzrostu gospodarczego (An econometric model of economic growth). Łódź: Wydawnictwo UŁ.

    Google Scholar 

  • Welfe, W. (2002). Łączna produktywność czynników produkcji a postęp techniczny (TFP and technical progress). Studia Ekonomiczne, 36–37(1–2), 94–115.

    Google Scholar 

  • Welfe, W. (2003). Długookresowy, makroekonometryczny model W8D gospodarki polskiej (Long-term macroeconometric model W8D of the Polish economy). Prace IEiS UŁ, 141. Łódź: Wydawnictwo UŁ.

    Google Scholar 

  • Welfe, W. (Ed.) (2004). Długookresowy, makroekonometryczny model WD-2002 gospodarki polskiej (Long term macroeconometric model W8D-2002 of the Polish economy). Acta UŁ, Folia oeconomica, 172. Łódź: Wydawnictwo UŁ.

    Google Scholar 

  • Welfe, W. (2005). Stylized empirical model of economic growth. In W. Welfe & A. Welfe (Eds.), Macromodels 2004, Problems of building and estimation of econometric models (pp. 109–125). Acta UŁ, Folia oeconomica, 190. Łódź: Wydawnictwo UŁ.

    Google Scholar 

  • Welfe, W. (2006). Towards modelling knowledge-based economies. In Second international symposium in management, engineering and informatics, Orlando, FL, 16–19.07.2006. Proceedings.

    Google Scholar 

  • Welfe, W. (Ed.) (2007). Gospodarka oparta na wiedzy (Knowledge-based economy). Warszawa: PWE.

    Google Scholar 

  • Welfe, W. (Ed.) (2009a). Makroekonometryczny model gospodarki polskiej opartej na wiedzy (Macroeconometric model of the knowledge economy for Poland). Acta UŁ, Folia oeconomica, 229. Łódź: Wydawnictwo UŁ.

    Google Scholar 

  • Welfe, W. (Ed.) (2009b). Knowledge-based economies. Models and methods. Frankfurt/Main: P. Lang.

    Google Scholar 

  • Welfe, W., & Welfe, A. (2004). Ekonometria stosowana (Applied econometrics) (2nd ed.). Warszawa: PWE.

    Google Scholar 

  • Welfe, W., Florczak, W., & Sabanty, L. (2002). Kapitał ludzki i jego endogenizacja (Human capital and its endogenization). Przegląd Statystyczny, 50(2), 7–36.

    Google Scholar 

  • Xu, B., & Wang, J. (1999). Capital goods trade and R&D spillovers in the OECD. Canadian Journal of Economics, 32(5), 1258–1274.

    Article  Google Scholar 

  • Xu, B., & Wang, J. (2000). Trade, FDI and international technology diffusion. Journal of Economic Integration, 15, 585–601.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Institute of Econometrics, University of Łódź, Rewolucji 1905 r. 41, Łódź, 90-214, Poland

    Władysław Welfe

Authors
  1. Władysław Welfe
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Władysław Welfe .

Rights and permissions

Reprints and permissions

Copyright information

© 2013 Springer-Verlag Berlin Heidelberg

About this chapter

Cite this chapter

Welfe, W. (2013). The Models of the Enterprise Sector. In: Macroeconometric Models. Advanced Studies in Theoretical and Applied Econometrics, vol 47. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-34468-8_17

Download citation

Publish with us

Policies and ethics

Search

Navigation