Asymmetric Adjustment Costs, Asymmetric Pricing and Employment: Evidence from the UK
This paper uses an asymmetric multivariate model to investigate asymmetries in employment and pricing behaviour by firms. This generalises the approach of Granger and Lee (1989) and also exploits the cross equation restrictions on the equations for prices and employment implied by a restricted cost function--the dual to a Cobb-Douglas production function. Our results suggest that both prices and employment respond asymmetrically to shocks to costs and demand. Copyright 2001 by Scottish Economic Society.
Volume (Year): 48 (2001)
Issue (Month): 1 (February)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=0036-9292|
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0036-9292|
When requesting a correction, please mention this item's handle: RePEc:bla:scotjp:v:48:y:2001:i:1:p:69-81. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.