Model Applications in the Airframe Industry

Abstract

In this chapter two applications of the preceeding model are reported. These applications illustrate two characteristics of the modeling effort. First, in contrast to the approaches to be discussed in Chapter VII, the approach is to estimate parameters from a model which describes the behavior of the firm, rather than use parameter estimates and then describe firm behavior. Second, we tend to approach the estimation probelm by transforming the model to describe the available data rather than artibrarily adjusting the data to fit the model. This approach typically requires different modeling approaches for each data set encountered. As a result the models estimated in the two applications of this chapter differ somewhat from each other even though they are both based on the theory developed in Chapter III.