Investment and Employment Dynamics in the Short Run and the Long Run
A firm's stochastic dynamic investment and employment decisions are examined when each of capital and labor has linear adjustment costs of increase and decrease. The analysis generated an endogenous ranking of the two factors as more or less flexible; thus the concepts of short and long runs are endogenized. Qualitative characteristics of the dynamics of the two factors are described. Adjustment of the more flexible factor can occur on its own but that of the less flexible factor occurs less frequently and only in conjunction with a complementary adjustment of the more flexible factor. Copyright 1997 by Royal Economic Society.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 49 (1997)
Issue (Month): 1 (January)
|Contact details of provider:|| Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK|
Fax: 01865 267 985
Web page: http://oep.oupjournals.org/
|Order Information:||Web: http://www.oup.co.uk/journals|
When requesting a correction, please mention this item's handle: RePEc:oup:oxecpp:v:49:y:1997:i:1:p:1-20. 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: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.