Normally, the literature (e.g., Flannery and Rangan, 2006; Byoun, 2008; Lemmon, Roberts, and Zender, 2008; Huang and Ritter, 2009) estimates leverage adjustment speed
with the following regression model:
where [alpha] > 0, [beta] > 0, and [gamma] > 0 are the adjustment speed
for the three firms, respectively.
In the equation above, [[theta].sub.i] (i = 1, 2) is the price adjustment speed
of retailer i, and the price adjustment speed
is positive, which is set to make sure that retail price of next period is practically significant.
But the factor that swayed us toward the EGC was the adjustment speed
. We make a lot of different products on the same line, so what's important to us is to reduce setup times and really tighten the time it takes to produce commercial-quality film, which reduces scrap rates." Compared with its previous air rings, the Addex EGC provided a 50% improvement in thickness control for all products on all three lines, Lord states.
In the previous equation, [v.sub.i], [[alpha].sub.i] [greater than or equal to] 0 (i = 1, 2, 3) are the adjustment speed
of retailer i for its recycle price [p.sub.i] and new product supply quantity [q.sub.i].
Based on the strategy recognition and the two-stage working capital adjustment model, the adjustment speed
of working capital and its influential factors on different strategic choices are analyzed and compared by panel data.
By allowing asymmetric and nonlinear adjustment processes, it was shown that the gap between the policy rate and the retail banking rates is the driving force of the interest rate pass-through so that when this gap is high the adjustment pace is rapid and when this gap is small the adjustment speed
We consider the standard partial adjustment model for empirical analysis of adjustment speed
because it can succinctly capture much of the lagged adjustment to new information.
Nevertheless, linear techniques limit the adjustment between oil and stock prices to being symmetric, linear and continuous, and therefore the adjustment speed
to being time-invariant.
When [[lambda].sub.p] = 1, then the population size ([P.sub.i,t]) of the urban planning area i will equal the reasonable value ([P.sup.E.sub.i,t]) in the tth review; population growth has attained the reasonable scale, and the adjustment speed
is also reasonable.
Lowering euro area price adjustment costs to the del lower US level, while leaving employment adjustment costs constant, does not visibly affect the adjustment speed
of real variables either.
Indeed, due to the presence of frictions in the insurance market, the heterogeneity of insurers' expectations, the competition between insurers, and a strong interdependence between insurance markets, the insurance premium dynamics seem to be asymmetrical, discontinuous, and nonlinear with a time-varying adjustment speed
. Besides, Higgins and Thistle (2000), considering a smooth transition regression (STAR) model, showed that the underwriting profits follow a stochastic process with time-varying parameters.