Driffield, Nigel; Pal, Sarmistha - Institute for the Study of Labor (IZA) - 2008
dynamics, partial adjustment models, firm- and time-varying
speed, generalised methods of moments, inertia and endeavours … (1984), we extend theses conventional models and
estimate partial adjustment models with (a) firm-specific and (b) firm …- and time-
varying speeds of adjustment.
3.1. Partial adjustment models
Let the optimal leverage of a firm i at time …