An ECM is derived from first order conditions of a factor demand model. Decisions on inventory stock and capacity utilization are (endogenously) modeled, by which a large system of equations results. Within this system the exogeneity of real factor prices as well as sales is tested. The role of...

A neoclassical factor demand model for structures, equipment and labour is analyzed. It incorporates a variety of dynamic specifications, such as a multi-period time-to-build for structures, internal adjustment costs for each production factor, and external investment adjustment costs....

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...