Table I FGNLS estimates for parameters...

Table I

FGNLS estimates for parameters of the value function for dynamic factor demand for Japanese manufacturing

Parameter	Full model	Model
Parameter	Full model	Independent adjustment	No dynamic adjustment⁺
$A_{11}$	7.2964 (0.3001)	6.1051 (0.2979)	3.1037 (0.2113)
$A_{12}$	0.4158 (0.0333)	0.4675 (0.0342)	−0.1707 (0.0245)
$A_{21}$	−4.6188 (0.2122)	−3.7933 (0.2102)	−1.9420 (0.1475)
$A_{22}$	−0.3292 (0.0236)	−0.3623 (0.0241)	0.1000 (0.0170)
$B_{11}$	−0.0423 (0.0009)	−0.0465 (0.0009)	−1
$B_{12}$	−0.0014 (0.0001)	0	0
$B_{21}$	0.0643 (0.0106)	0	0
$B_{22}$	−0.0420 (0.0017)	−0.0366 (0.0015)	−1
$E_{11}$	0.1677 (0.2195)*	0.2987 (0.2211)*	−0.8869 (0.2499)
$E_{12}$	35.468 (1.0485)	35.655 (1.0530)	30.401 (1.1770)
$E_{21}$	−0.0383 (0.3530)*	−0.1884 (0.3537)*	1.1431 (0.4319)
$E_{22}$	−17.977 (1.0277)	−18.036 (1.0275)	−13.228 (1.1862)
$F_{11}$	−0.6908 (1.7487)*	−7.1286 (1.5821)	−7.8888 (1.8559)
$F_{12}$	−0.2311 (0.2392)*	−0.3775 (0.2411)*	1.0402 (0.2538)
$F_{22}$	−6.9543 (20.455)*	−46.7443 (23.911)*	185.157 (11.313)
$G_{11}$	−13.532 (1.4010)	−13.156 (1.4025)	−18.423 (1.4121)
$G_{12}$	5.7817 (0.4487)	5.8268 (0.4490)	4.3263 (0.5120)
$G_{22}$	−5.5390 (1.0085)	−5.3021 (1.0094)	−8.7593 (1.0246)
$H_{1}$	0.1641 (0.0178)	0.1595 (0.0178)	0.2300 (0.0179)
$H_{2}$	−0.0715 (0.0128)	−0.0686 (0.0128)	−0.1141 (0.0129)
$H_{3}$	0.0084 (0.0222)*	0.0905 (0.0201)	0.0936 (0.0236)
$H_{4}$	0.0652 (0.2600)*	0.5645 (0.3041)*	−2.3992 (0.1438)

Parameter	Full model	Model
Parameter	Full model	Independent adjustment	No dynamic adjustment⁺
$A_{11}$	7.2964 (0.3001)	6.1051 (0.2979)	3.1037 (0.2113)
$A_{12}$	0.4158 (0.0333)	0.4675 (0.0342)	−0.1707 (0.0245)
$A_{21}$	−4.6188 (0.2122)	−3.7933 (0.2102)	−1.9420 (0.1475)
$A_{22}$	−0.3292 (0.0236)	−0.3623 (0.0241)	0.1000 (0.0170)
$B_{11}$	−0.0423 (0.0009)	−0.0465 (0.0009)	−1
$B_{12}$	−0.0014 (0.0001)	0	0
$B_{21}$	0.0643 (0.0106)	0	0
$B_{22}$	−0.0420 (0.0017)	−0.0366 (0.0015)	−1
$E_{11}$	0.1677 (0.2195)*	0.2987 (0.2211)*	−0.8869 (0.2499)
$E_{12}$	35.468 (1.0485)	35.655 (1.0530)	30.401 (1.1770)
$E_{21}$	−0.0383 (0.3530)*	−0.1884 (0.3537)*	1.1431 (0.4319)
$E_{22}$	−17.977 (1.0277)	−18.036 (1.0275)	−13.228 (1.1862)
$F_{11}$	−0.6908 (1.7487)*	−7.1286 (1.5821)	−7.8888 (1.8559)
$F_{12}$	−0.2311 (0.2392)*	−0.3775 (0.2411)*	1.0402 (0.2538)
$F_{22}$	−6.9543 (20.455)*	−46.7443 (23.911)*	185.157 (11.313)
$G_{11}$	−13.532 (1.4010)	−13.156 (1.4025)	−18.423 (1.4121)
$G_{12}$	5.7817 (0.4487)	5.8268 (0.4490)	4.3263 (0.5120)
$G_{22}$	−5.5390 (1.0085)	−5.3021 (1.0094)	−8.7593 (1.0246)
$H_{1}$	0.1641 (0.0178)	0.1595 (0.0178)	0.2300 (0.0179)
$H_{2}$	−0.0715 (0.0128)	−0.0686 (0.0128)	−0.1141 (0.0129)
$H_{3}$	0.0084 (0.0222)*	0.0905 (0.0201)	0.0936 (0.0236)
$H_{4}$	0.0652 (0.2600)*	0.5645 (0.3041)*	−2.3992 (0.1438)

Note(s): *Except those denoted by star, all the variables are statistically significant at the 1 percent significance level. ⁺In the model that has no dynamic adjustment, both independent adjustments, $B_{12} = B_{21} = 0$ and instantaneous adjustment of both capital and labor, $B_{11} = B_{22} = - 1$ are assumed. Asymtotic standard errors are in parentheses.

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