This study analyzes dynamic production input factor decisions using the annual Census of Manufacturing firms from Colombia and monthly production data from a glass mould firm. It proposes a model able to explain the mix of smooth and lumpy adjustment and both the static…
Contents
11 An Empirical Model of Factor Adjustment Dynamics
1.1 Introduction
1.2 Factor Adjustment: An Exploration of the Facts from the Micro-data
1.2.1 Data
1.2.2 Basics About Factor Adjustment: Distributions and Correla-tions
1.2.3 Factor Adjustment Interrelation: Dynamic Dependence
1.2.4 The Role of Heterogeneity
1.3 A Dynamic Model of Firms’ Factor Adjustment
1.3.1 Basics
1.3.2 Analysis of the Model
1.4 Capital and Labor Adjustment: A Numerical Analysis of the Pro-posed Model
1.4.1 Numerical Methods
1.4.2 About the Parameters: Estimation and Calibration
1.4.3 Decision Rules for Capital and Employment Adjustment
1.4.4 Congestion Effects and Adjustment Costs: A Simulation ex-ploration
1.5 Structural Estimation of the Adjustment Cost Parameters
1.5.1 Methodology
1.5.2 Adjustment Costs Parameters: Fitting the Data
1.5.3 Non-formal Tests of Goodness of Fit
1.6 Conclusions
2 Costs of Adjusting Production Factors: The Case of a Glass Mould Company 80
2.1 Introduction
2.2 Description of the firm and the production process
2.2.1 History of Moldes Medellin
2.2.2 The Production Process
2.3 Data: Production process, Factor Adjustment Dynamics and Adjustment Costs
2.3.1 Data
2.3.2 A First look at the Production and Factor Adjustment Dynamics
2.3.3 A Description and Calculation of the Adjustment Costs facedby the Company
2.4 How Well the Model from Chapter One Can fit this Particular Firm?
2.4.1 Model
2.4.2 Calibration/Estimation of the Parameters
2.4.3 Simulations Results
ix2.5 Conclusions and Future work
3 Conclusions and Final Thoughts
Appendix
Author: Contreras, Juan M
Source: University of Maryland
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