I estimate adjustment costs for labor and capital from the Euler equations for factor demand. For both factors, I find relatively strong evidence against substantial adjustment costs. My estimates use annual data from two-digit industries. I investigate the potential effects of three types of...

In this paper, substitutional relationships between capital, labour, material, electricity, and fossil fuels in German producing and service sectors are estimated using a translog cost function. Estimates are based on a pooled time-series cross-sectional data sample for the period 1978-90 and...

Any serious empirical study of factor substitutability has to allow the data to display complementarity as well as substitutability. The standard approach reflecting this idea is a translog specification - this is also the approach used by numerous studies analyzing the relative capital-skill...

In this article, I derive expressions for the Morishima elasticities of substitution (MES) for the variable profit function and estimate these elasticities to shed some light on the substitutability between imports, capital services, and labor services. The results reveal that capital services...

Introduction to Capital Equipment Purchasing.- Characterisation of Capital Equipment.- Characterisation of Capital Equipment Purchasing -- Typical Challenges and Possible Solutions in the Procurement of Capital Equipment -- Process for the Procurement of Capital Equipment.- Instruments and...

In this paper we provide a thorough characterization of the asset return implied by a simple general equilibrium production economy with convex investment adjustment costs. When households have Epstein-Zin preferences, there exist plausible parameter values such that the model generates...

According to the Oxford English Dictionary, the term capitalism refers to: “The possession of capital or wealth; an economic system in which private capital or wealth is used in the production or distribution of goods and prices are determined mainly in a free market; the dominance of private...