Combining micro and macro data, we construct demand-side shocks, which we take to be exogenous for individual firms. We estimate a reduced-form model to describe how firms adjust their production, employment, capital stock, and inventories in response to such shocks. Then, we chose the...

Kaldor's Laws, regarding relationships between output, employment and productivity in manufacturing are estimated with Kreis-data of the Bundesländer Hessen, Nordrhein- Westfalen, Rheinland-Pfalz and Saarland between 1980-92 by estimation methods considering the presence of spatial...