Table II Hypothesis tests for dynamic...

Table II

Hypothesis tests for dynamic factor demand for Japanese manufacturing industry

Null hypotheses	Test statistics	Critical value	Decision
Independent adjustment $B_{12} = B_{21} = 0$	413	$χ_{2, 0.01}^{2} = 9.210$	Rejected
Instantaneous adjustment of labor $B_{11} = - 1$ & $B_{12} = B_{21} = 0$	14.367	$χ_{3, 0.01}^{2} = 11.34$	Rejected
Instantaneous adjustment of capital $B_{22} = - 1$ & $B_{12} = B_{21} = 0$	121.37	$χ_{3, 0.01}^{2} = 11.34$	Rejected
No technological change $H_{i} = 0, i = 1, 2, 3, 4$	132.92	$χ_{4, 0 .01}^{2} = 13.27$	Rejected
No disembodied technological change in labor $H_{3} = 0$	22.28	$χ_{1, 0.01}^{2} = 6.634$	Rejected
No disembodied technological change in capital $H_{4} = 0$	−73.10	$χ_{1,0 . 01}^{2} = 6.634$	Accepted

Null hypotheses	Test statistics	Critical value	Decision
Independent adjustment $B_{12} = B_{21} = 0$	413	$χ_{2, 0.01}^{2} = 9.210$	Rejected
Instantaneous adjustment of labor $B_{11} = - 1$ & $B_{12} = B_{21} = 0$	14.367	$χ_{3, 0.01}^{2} = 11.34$	Rejected
Instantaneous adjustment of capital $B_{22} = - 1$ & $B_{12} = B_{21} = 0$	121.37	$χ_{3, 0.01}^{2} = 11.34$	Rejected
No technological change $H_{i} = 0, i = 1, 2, 3, 4$	132.92	$χ_{4, 0 .01}^{2} = 13.27$	Rejected
No disembodied technological change in labor $H_{3} = 0$	22.28	$χ_{1, 0.01}^{2} = 6.634$	Rejected
No disembodied technological change in capital $H_{4} = 0$	−73.10	$χ_{1,0 . 01}^{2} = 6.634$	Accepted

Note(s): All tests are based on the full model in which symmetricity of $G_{12} = G_{21}$ and $F_{12} = F_{21}$ is assumed. In addition, independent adjustment of $B_{12} = B_{21}$ is assumed for the tests about instantaneous adjustment.

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