The estimation of Barone-curves based on the Iwai-model
Article Abstract:
It is possible to interpret Barone's supply curve as a result of dynamic effects resulting from Schumpeterian competition, and using Iwai's simple diffusion model to find an empirical result, giving results which support Iwai's model. However, since Iwai was focusing on perfect competition, it is most applicable in economic sectors where concentration is at low levels. The model is also very sensitive to shocks from outside, which tend to result in distortions of profit distribution. The study points to a need to enlarge the Iwai model's theoretical framework.
Publication Name: Journal of Economic Behavior & Organization
Subject: Economics
ISSN: 0167-2681
Year: 1993
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Simulating the inventory cycle
Article Abstract:
A study using a simulated inventory cycle suggests a number of conclusions, including the notion that there is more probability of instability if companies' behaviour is less prone to inertia. Large inventories in relation to production also tend to be linked to instability. Flexible accelerator models perform well as econometric frameworks in this study, while using a ratio of how sales and output varied is not helpful in assessing the extent to which companies try to smooth production.
Publication Name: Journal of Economic Behavior & Organization
Subject: Economics
ISSN: 0167-2681
Year: 1993
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Industry evolution with a sequence of technologies and hetergeneous ability: a model of creative destruction
Article Abstract:
Profit rates for companies appear to be more closely linked to their size than to their research abilities, though research ability does influence which firms leave and come into an industry. The study is based on a model of creative destruction, based on Schumpeter's ideas, and it can be seen that major changes in technology can affect the stability of an economic sector. Indications are that mergers between companies with strong research ability are desirable.
Publication Name: Journal of Economic Behavior & Organization
Subject: Economics
ISSN: 0167-2681
Year: 1993
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