In literature two types of models exist that aim at describing the production decision(s) of entrepreneurs, taking account of production costs and costs incurred by the existence of inventory stocks of final goods. One type is called the production smoothing models and the other type the factor...

R&D components are investigated in dynamic factor demand models using pooled Japanese data. Models without R&D, with R&D (double or) wrongly counted and (once or) correctly counted are compared by means of GMM estimates, (non-)nested GMM tests and residual analyses. The results indicate that R&D...