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Research Institute of Industrial Economics (IFN) Working Paper Series

No 144:
Adaptive Economizing, Technological Change, and the Demand for Labor in Disequilibrium

Richard H. Day and Kenneth A. Hanson

Abstract: An adaptive economizing framework is proposed for analyzing labor market aspects of long-term industrial development using a dynamic, disaggregate economic model based upon principles of bounded rationality and markets in disequilibrium. The approach is applied to a firm's investment-production planning problem to illustrate how labor demand is related to capital investment and technological change.

Keywords: Adaptive framework; labour market; industrial development; disequilibrium; investment-production planning; (follow links to similar papers)

JEL-Codes: J20; O30; (follow links to similar papers)

36 pages, July 1985

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