Title: Estimation of dynamic labor demand schedules under rational expectations
Description: "A dynamic linear demand schedule for labor is estimated and tested.  The hypothesis of rational expectations and assumptions about the orders of the Markov processes governing technology impose over-identifying restrictions on a vector autoregression for straight-time employment, overtime employment, and the real wage.  The model is estimated by the full information maximum likelihood method.  The model is used as a vehicle for re-examining some of the paradoxical cyclical behavior of real wages described in the famous Dunlop-Tarshis-Keynes exchange"--Federal Reserve Bank of Minneapolis web site.
Subjects: Labor market, Mathematical models