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By D. Weiserbs (auth.), D. Weiserbs (eds.)

The 5th assembly of the «European construction research workforce» (I) used to be held in Louvain-la-Neuve in September 1984 less than the sponsorship of the ecu funding financial institution. the current quantity experiences the procee­ dings of this convention which used to be dedicated to numerous features of business funding in Europe. specific consciousness was once given to empirical contributions. half one includes these concentrating on the determinants of companies' funding. the gang was once additionally involved via coverage implications (part two), by way of the position and the explicit nature of international funding (part 3) and via theoretical advancements that have transparent empirical implications resembling the issues of the size of capital utilisation and premiums of go back (part four). 1. The learn through D. Weiserbs on business funding within the six significant states of the neighborhood indicates marked ameliorations among international locations. Ac­ cording to his effects, call for customers are the most determinant of in­ vestment progress. Relative expense alterations have a quantitatively extra modest impact whereas organizations' self financing potential often impacts short-run deci­ sions. notwithstanding, as mentioned by way of C. Boyd in his remark, the small variety of observations imposes powerful boundaries within the modelling of the dynamic features of funding. the subsequent threee reviews supply a extra deeper research for France, Italy and Belgium respectively.

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29 - for the demand with labor and output constraints: 1 - Log I = V (1 _ (3) Log ilQ where {3 wilL = wAL + cI ; {3 - 1=""{3 Log ilL 1/ = (15) cI p'. All these expressions are, of course, first-order approximations, supposing that {3 and 7r (the respective shares of costs) fluctuate little, which is, in fact, the case. S. function. The four preceeding expressions have been given for the case in which technicill progress incorporated into the equipment is absent. "II; if referring to labor (Harrod neutral), Land w' must be corrected by e11 ; referring to capital (Solow neutral), I and c' must be corrected by C1t.

J. & SOMERS, V. E. W. Research Memorandum, University of Tilburg. 49 A Unified Framework for Firms' Decisions Theoretical Analysis and Empirical Application to Italy 1970-1980 by Riccardo FAINI * and Fabio SCHIANTARELLI ** INTRODUCTION During the last twenty years there has been an increasing tendency to derive firms' decision rules from explicit inter-temporal optimizing models. Such quests for choice-theoretical foundations has been regarded both as logically necessary and empirically fruitful in specifying the equations describing input demand, production, pricing and inventory accumulation.

Moreover, it emphasizes the fact that investment, employment and also prices are probably strategic decisions taken with reference to normal hours. Hours and inventories reflect, more than anything else, short-run changes of demand and are likely to be decided taking the level of normal capacity as given. 2. PRICING DECISIONS AND EXPANSION OF PRODUCTIVE CAPACITY Consider first the derivation of the price equation. It seems reasonable to assume that pricing decisions are taken with reference with to the cost structure when plants are operated for the normal length of the working day.

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