Output and employment growth in the Netherlands in the postwar period: A putty-clay approach

Kuipers, Sanneke; Zon, A.H. van

doi:10.1007/bf02371709

Cited by 17 publications

(13 citation statements)

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“…Expectations may -and usually do -differ from realisations. This notion also underlies the approaches of Sandee [30], Kuipers and Van Zon [24] and Gelauff et al [10]. However, they do not assume that the expected lifetime of new equipment is an endogenous variable intricately determined in the maximisation procedure in relation to, by all means, uncertain expectational values of wage rates, prices and discount rates.…”

Section: Rr= E {O~rptr-atr [Tr)(l+r)-(t-r)}-irrpi R (23) T-~ 7-mentioning

confidence: 89%

Empirical vintage models for the Netherlands: A review in outline

Hartog

1984

De Economist

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Since the pioneering article of Attiyeh [1] on an empirical vintage model of production for U.S. manufacturing, research in that field has been undertaken for several other countries as well. For the Netherlands the results of the first attempts to estimate such models were published in 1974 by De Vries [38] followed shortly after by Den Hartog and Tjan [ 12]. In contrast to the approach followed by De Vries the latter two authors stressed the role of real labour costs in determining the life span of equipment and consequently in determining the number of available jobs. The message conveyed by Den Hartog and Tjan was essentially that rising unemployment in the early 1970's ( Fig. 1) was not due to stagnating aggregate demand ( Fig. 2) but to real wage costs growing too fast ( Fig. 3) and investments growing too slow (Fig. 2).Notwithstanding the predominantly Keynesian-flavoured notions of employment policy at the time, the philosophy and implications of the Den HartogTjan paper pervaded that realm remarkably quickly.This and the phenomenon of stagnating employment with growth still prevailing provoked a lively, not to say a heated discussion. Contributions to this discussion came from some 30 authors and included total rejection of the approach, refinements, extensions and amendments of the vintage model and its estimation procedure, the integration of the approach in a more comprehensive model of the economy and an extensive discussion of its policy implications [8],To review this discussion in all detail would require much more than the number of pages intended for this article. Its scope is therefore limited to a treatment of the main issues, In section 1 the work on clay-clay (ex ante complementarity) vintage models will be reviewed, while section 2 is devoted to vintage models assuming ex ante substitutability, Attention will be given to (theoretical) model specifications, empirically inspired adjustments arid empirical results. Estimation procedures and methods can only be hinted at. In conclusion section 3 provides some scanty remarks on the policy implications of vintage models embedded in comprehensive models of the economy as well as a conjecture on the theoretical significance of that approach. *Central Planning Bureau, The Hague, the Netherlands. The author acknowledges the critical remarks of G.M.M. Gelauff and H.IS. Tjan and their help in the construction of Tables 1,2 and 3.

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Section: Rr= E {O~rptr-atr [Tr)(l+r)-(t-r)}-irrpi R (23) T-~ 7-mentioning

confidence: 89%

Empirical vintage models for the Netherlands: A review in outline

Hartog

1984

De Economist

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“…Re 2. The presumed constancy of the capital output ratio in particular and the adequacy of the clay-clay structure in general gave rise to a number of alternative empirical vintage models for the Netherlands, mainly of the puttyclay type (see Kuipers and Van Zon, 1982, and the references therein). These exercises, however, did not lead to a complete abandonment of the clay-clay specification in FREIA.…”

Section: The Vintage Approachmentioning

confidence: 99%

Freia and Kompas, The Central Planning Bureau's new generation of macro-economic policy models: A review article

Butter

1985

De Economist

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“…In hoofdstuk 3 wordt zowel een standaard putty-clay model als het (nieuwe) puttyclay diffusiemodel gepresenteerd. In Nederland zijn putty-clay modellen ontwikkeld door onder meer Kuipers en van Zon (1982), Gelauff, Wennekers en de Jong (1985) en door Muysken en van Zon (1987). Geen van deze modellen is echter in staat om de feitelijke ontwikkeling van de arbeidsproduktiviteit te volgen zonder ad hoc aanpassingen aan te brengen.…”

Section: Het Putty-clay Diffusie Modelunclassified

“…Furthermore, the results showed almost no capital-augmenting technological progress. The putty-clay models, for instance those developed by Kuipers and van Zon (1982), Gelauff, Wennekers and de Jong (1985), and Muysken and van Zon (1987), are all based on a CES production function. The optimal labour intensity stems from maximizing firm behaviour.…”

Section: The Dutch Experience 38mentioning

confidence: 99%

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On the diffusion of technologies in a vintage framework : theoretical considerations and empirical results

Meijers

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Output and employment growth in the Netherlands in the postwar period: A putty-clay approach

Cited by 17 publications

References 0 publications

Empirical vintage models for the Netherlands: A review in outline

Empirical vintage models for the Netherlands: A review in outline

Freia and Kompas, The Central Planning Bureau's new generation of macro-economic policy models: A review article

On the diffusion of technologies in a vintage framework : theoretical considerations and empirical results

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