https://mpra.ub.uni-muenchen.de/id/eprint/28716 2019-09-28T16:43:31Z info:eu-repo/semantics/descriptiveMetadata https://mpra.ub.uni-muenchen.de/28716/ The (mis-)specification of production costs in production smoothing models Peeters, H.M.M. G31 - Capital Budgeting ; Fixed Investment and Inventory Studies ; Capacity E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy E24 - Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity Estimation results obtained with production smoothing models are often imprecise and sensitive to normalisation rules. It is argued that production costs in these models can be better specified in terms of production factor costs. The resulting (factor demand) model with inventories leads to more efficient estimation results and normalisation rules become even redundant. Furthermore, the (smoothing) role of inventories with respect to production factors is discussed. 1997 MPRA Paper NonPeerReviewed application/pdf en https://mpra.ub.uni-muenchen.de/28716/1/MPRA_paper_28716.pdf Peeters, H.M.M. (1997): The (mis-)specification of production costs in production smoothing models. Published in: Economics Letters No. 57 : pp. 69-77. en info:eu-repo/semantics/objectFile info:eu-repo/semantics/humanStartPage