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Firms responses to changes in demand: Some insight from survey-data

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Abstract

This paper presents some empirical insight into the adjustment behaviour of individual firms that experience a change in demand. Section I briefly outlines recent theoretical approaches to explain the impact of demand variations on firms' price and output decisions. The next section gives a short description of the data used for the subsequent empirical analysis. In section III we explain our methodical procedure. Section IV presents a set of “response functions” that explicitly described the intensity and time pattern of firms' responses with prices, output, and order backlogs to variations of demand. Finally we comment on the limits of the study and summarize the main conclusions we derive from the empirical results.

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Authors and Affiliations

  1. Universität Mannheim, A5, 6800, Mannheim 1, FRG

    H. Seitz

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  1. H. Seitz
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I am grateful for helpful comments by Prof. Helmut Frisch (Vienna); Prof. Heinz König (Mannheim); Jürgen Kähler and Winfried Pohlmeier (Mannheim).

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Seitz, H. Firms responses to changes in demand: Some insight from survey-data. Empirical Economics 11, 111–123 (1986). https://doi.org/10.1007/BF01987508

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  • DOI: https://doi.org/10.1007/BF01987508

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