Individuals do not exist in isolation but are embedded within networks of relationships, such as families, coworkers, neighbors, friendships or socioeconomic groups. While there is a long tradition in sociology and anthropology focusing on theimportance of social structure, norms and culture, economists have long ignored social influences on individual behavior. Even though social influences may play ...
This paper presents the theoretical structure and empirical restults of a multisectoral model of producer behaviour for explaining input-coefficients, investment, and price of output for 51 sectors of the West German economy. The model is based on a long run model of demand derived from the Generalized Leontief cost function and on the dynamic structure given by an ARX (1,1) model.
