Our model can be viewed either as an aggregate model in which the degree of substitutability
between products of different sectors is the same for every pair of sectors or as a model of the interaction between firms in a single-sector economy.
Moreover, clear differences in substitutability
can be identified.
Now product substitutability
under price competition is rescaled from [0, [infinity]] to [0, 1] and captured by [lambda]'.
A more relaxed notion of substitutability
is what we call minimal disruption.
of perfect substitutability
or an instance of imperfect
The significant result reported for Test 3, that futures trading volume causes OTC trading volume, is consistent with the substitutability
of the markets.
To summarize, partial or absolute substitutability
can be produced by any discrimination procedure used to establish class membership.
Region 2 offers an example of cannibalization: the substitutability
between products, i.
national labor markets and the consequences of failure to adjust analysis and expectations to the reality of global labor substitutability
These models mulling over the demand-side effects of public spending conclude that public investment crowds out some though not all private investment (say substitutability
These include substitutability
and complementarity views.
Prskawetz and Fent (2004) show that the degree of substitutability
between workers of different ages is another, potentially important, factor affecting aggregate labour productivity.
As part of their calculation of the impact of increased import variety on economic well-being, Broda and Weinstein estimated the substitutability
of the varieties of the thousands of goods being imported.
Thus, the relative merits of the effects of tied and untied transfers on the dynamic evolution of the economy, and their respective desirability from a welfare standpoint, depend on a number of key structural characteristics in the economy that illustrate its flexibility These include (i) the costs of installing publicly provided capital relative to those of private capital (investment flexibility), (ii) the substitutability
between public and private capital in the production process (production flexibility), (iii) the degree of access to the world financial market (financial flexibility) and (iv) the flexibility of labor supply
The model's central assumption is that there is imperfect substitutability
not only between U.