Publisher Summary The chapter presents a discussion on the dynamic models of labor
demand. A firm does not hire its workforce afresh each day for the reason that it is cheaper …

This chapter provides a review of solution and estimation methods available in the literature
for the analysis of multivariate linear rational expectations models, and proposes new …

It has often been argued that prices are sticky in the United States. However, the empirical
papers that have claimed to support this view have not reflected any formal behavioral …

This paper describes a method for estimating and testing nonlinear rational expectations
models directly from stochastic Euler equations. The estimation procedure makes sample …

This paper studies the consequences for the behaviour of aggregate output of the
perception on the part of firms that changing prices is costly. The rational expectations …

This paper describes methods for conveniently formulating and estimating dynamic linear
econometric models under the hypothesis of rational expectations. An econometrically …

There are very few aspects of economic policy that do not require some knowledge of
household or individual consumer behaviour. Moreover, the close interplay between …

Most models of the industrial demand for energy, capital, and other factor inputs can be
grouped into two categories. The first is static models that consistently account for …

Rational expectations theory was originally developed by monetarist economists to buttress
their arguments that demand management policies could not be used to affect the real …

A model of the dynamically interrelated demand for capital and labor is specified and
estimated. The estimates are of the first-order conditions of the firm's problem rather than of …