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Investissement et embauche avec coûts d'ajustement fixes et asymétriques

Author

Listed:
  • Xavier Fairise

    (GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université, TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS - Centre National de la Recherche Scientifique)

  • Jérôme Glachant

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

A firm operating in a deterministic and continuous time world uses a simple Cobb-Douglas technology with diminishing returns and faces complex adjustment costs of its factors. On the one hand, a proportional cost of employment applies to the irreversible labor factor. On the other hand, investing requires a fixed cost that is proportional to the firm's workforce. The firm then determines its hiring and investment policy which maximizes the discounted value of its cash flows. The combination of fixed and variable costs involves a non-trivial cycle of factor adjustment in which there is a continuous hiring episode followed by a hiring freeze followed by a simultaneous spike in investment and hiring. The article proposes a numerical assessment of the effects of fixed cost size on the life cycle of the firm.

Suggested Citation

  • Xavier Fairise & Jérôme Glachant, 2018. "Investissement et embauche avec coûts d'ajustement fixes et asymétriques," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01878454, HAL.
    • Handle: RePEc:hal:cesptp:halshs-01878454
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01878454
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    Keywords

    Investment; hiring; fixed cost; asymmetric linear costs; irreversibility; Investissement; embauche; coût fixe; coûts linéaire asymétrique; irréversibilité;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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