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A Disequilibrium Model of Demand for Factors of Production



Further Observations, Summary, and Conclusions This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: A Disequilibrium Model of Demand for Factors of Production Volume Author/Editor: M. Ishaq Nadiri and Sherwin Rosen Volume Publisher: Volume ISBN: 0-87014-261-5 Volume URL: Publication Date: 1973 Chapter Title: Further Observations, Summary, and Conclusions Chapter Author: M. Ishaq Nadiri, Sherwin Rosen Chapter URL: Chapter pages in book: (p. 160 - 171) 7 FURTHER OBSERVATIONS, SUMMARY, AND CONCLUSIONS IN this final chapter, we first comment on interindustry results reported in previous chapters and then compare our results with those reported in the literature. An over-all summary and conclusion is contained in section C. A. INTERINDUSTRY DIFFERENCES Impact effects, distributed lags, and long-run coefficients show sub- stantial variation among industries, reflecting corresponding variation in industrial structure. Many of the systematic patterns among the results were noted aboie and need not be repeated. Instead, we concen- trate on the three salient features of the results: (i) Response patterns for nondurable industries are slower and displaced one or two quarters behind those in durables; (ii) long-run sales responses tend to be much greater in durables, in contrast to long-run price effects, which are similar and small among all industries; (iii) distributed lag patterns do not converge in several nondurable industries. An explanation for these divergences must be sought in the underlying characteristics of the two types of industry. Sales and price variability as measured by the coefficient of variation is much higher in durables than in nondurables. Furthermore, as measured by wage rates, workers in the durables industries tend to be more skilled and, also, more highly unionized (Lewis [l963J). The fraction of woman workers

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