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Estimating the Lagged Response of Profitability on Labour Ratio

Attila Gaspar

Review of Economic Analysis2025https://doi.org/10.15353/rea.v17i4.6284article
AJG 1ABDC B
Weight
0.50

What the paper says

This paper investigates recent trends of production factor – including both capital and labour – ratios in the EU-27 based on national accounts data. These output elasticities are typically expected to be constant, however, both theoretically and empirically, these assumptions are frequently violated for a variety of reasons. In this paper a lagged response is introduced and investigated: changes of profitability can affect labour force adjustments with a delay. Granger causality tests confirm lagged behaviour. Structural VAR estimations show the strongest impact over the span of two to five quarters and the effect is moderate.

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https://doi.org/https://doi.org/10.15353/rea.v17i4.6284

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@article{attila2025,
  title        = {{Estimating the Lagged Response of Profitability on Labour Ratio}},
  author       = {Attila Gaspar},
  journal      = {Review of Economic Analysis},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.15353/rea.v17i4.6284},
}

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Estimating the Lagged Response of Profitability on Labour Ratio

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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