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We survey recent microeconometric research on investment and employment that has used panel data on individual firms or … plants. We focus on model specification and econometric estimation issues, but we also review some of the main empirical … theory of the demand for capital and labour, on which most of the econometric models of investment and employment that we …
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The debate in Australia on the (constant-output) elasticity of labour demand with respect to wages has wrongly sidelined the role of capital stock as a determinant of employment (Webster, 2003). As far back as 1991, Pissarides had argued that the influence of capital stock on the performance of...
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