Palm, Franz C; Peeters, H M M; Pfann, G A - In: Empirical Economics 18 (1993) 4, pp. 639-71
In order to explain cyclical behavior of factor demand, the static neoclassical model of the firm has been extended to include either adjustment costs (e.g. Lucas (1967) or time-to-build considerations in Kydland and Prescott (1982). This paper presents an intertemporal factor demand model which...