Investment, Sales Constraints and Profitability in France, 1957-1985
(1988) Recherches économiques de Louvain — Vol. 54, n° 2, p. 151-167 (1988)
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- Authors
- Abstract
- This paper is deveoted to the analysis of the investment bahavior of the firm in the context of a quantity rationing ( or disequilibrium) model with monopolistic competition on the goods market. Investment i entirely profit-driven as in the q-theory of investment. The profit variable is however decomposed into three components: the markup rate on variable costs, the capacity utilization rate and the discrepancy between the optimal and the actual-labor ratios. The model has the same mong run implication as an accelerator model if and only if the optimal capacity utilization rate is constant in the long run. The suggested quantity rationing model is estimated on French data, over the period 1956-1985. The emphasis is on the the investmentequation. the parameter estimates are shown to have remained fairly stable over time.
- Affiliations
Université Catholique de Lille Faculté Libre des Sciences Economiques
Citations
Sneessens, H., & Maillard, B. (1988). Investment, Sales Constraints and Profitability in France, 1957-1985. Recherches économiques de Louvain, 54(2), 151-167. https://hdl.handle.net/2078.5/154326 (Original work published 1988)