SEQUENTIALITY VERSUS SIMULTANEITY: INTERRELATED FACTOR DEMAND

• 成果类型: Article
• 署名作者: Asphjell, Magne K.; Letterie, Wilko; Nilsen, Oivind A.; Pfann, Gerard A.
• 署名单位: Norwegian School of Economics (NHH); Maastricht University
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00411
• 发表日期: 2014-12
• 页码: 986-998
• 关键词: adjustment costs; labor demand; fixed costs; INVESTMENT; uncertainty; models; firm; job

摘要

Firms may adjust capital and labor sequentially or simultaneously. In this paper, we develop a structural model of interrelated factor demand subject to nonconvex adjustment costs and estimated by simulated method of moments. Based on Norwegian manufacturing industry plant-level data, parameter estimates reveal cost advantages for adjusting capital and making net changes in labor simultaneously. Factor demand models with fully specified interrelated adjustment costs structures perform best to describe the dynamic panel data.