The Private Sector During Adjustment: The Interaction of Price Incentives and Structural Factors

Abstract

This chapter is an empirical investigation of the hypotheses presented in Chapter 4. Chapters 5, 6 and 7 analysed adjustment of firms through structural changes over time assuming a heterogeneous private sector. The analysis models the impact of relative prices on firms using variables in the cost and asset structures, which act as the medium through which the effects of adjustment are felt. The availability of a survey with qualitative responses related to the stated effects and responses of a small sample of firms will support the analyses.¹ By combining both quantitative and qualitative survey data the aim is to obtain the most plausible explanations relative to the regression results.