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A Macro Disequilibrium Model for Switzerland

Stalder, Peter

In: Recherches Economiques De Louvain / Louvain Economic Review, 1991, vol. 57, no. 2, p. 125-158

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    Title
    • A Macro Disequilibrium Model for Switzerland
    Author
    • Stalder, Peter. Center for the Research of Economic Activity, ETH, Zürich
    Document Type
    • Postprint
    Language
    • English
    Published in
    • Recherches Economiques De Louvain / Louvain Economic Review, 1991, vol. 57, no. 2, p. 125-158. Cambridge University Press
    Other Version
    Classification
    • Economics
    Keywords
    OAI-PMH Identifier
    • oai:doc.rero.ch:304958
    Summary
    This paper presents a disequilibrium model for Switzerland, focusing on the production sector and the associated spillover effects. Firms' decisions on output supply, labor demand and investment are analysed on basis of a vintage approach, involving pressure of demand, profitability and relative prices as determinants. Macro relationships are derived by aggregating over micro markets on which regimes are allowed to differ. In the resulting nonlinear macro structure the response of output and employment to demand-side and supply-side factors varies through the cycle, depending on the regime-mix (measured by survey data). Inventories and unfilled orders act as buffer stocks, modifying the dynamic link between current demand and output