Chang, Yongsung; Hornstein, Andreas; Sarte, Pierre-Daniel G. - Federal Reserve Bank of Richmond - 2006
Whether technological progress raises or lowers aggregate employment in the short run has been the subject of much … debate in recent years. Using a simple model of industry employment, we show that cross-industry differences of inventory … holding costs, demand elasticities, and price rigidities potentially all affect employment decisions in the face of …