Similar Search Results

King, Robert G. - 2003

Many kinds of economic behavior appear to be governed by discrete and occasional individual choices. Despite this, econometric partial adjustment models perform relatively well at the aggregate level. Analyzing the classic employment adjustment problem, we show how discrete and occasional...

Persistent link: https://www.econbiz.de/10012468751

The Analytics of the Wage Effect of Immigration

Borjas, George J. - 2009

The theory of factor demand has important implications for the study of the impact of immigration on wages. This paper … theory can be used to check the plausibility of the many contradictory claims that appear throughout the immigration …

Persistent link: https://www.econbiz.de/10012463851

The Labor Demand Curve is Downward Sloping : Reexamining the Impact of Immigration on the Labor Market

Borjas, George J. - 2003

Immigration is not evenly balanced across groups of workers that have the same education but differ in their work … market impact of immigration by exploiting this variation in supply shifts across education-experience groups. I assume that … substitutes. The analysis indicates that immigration lowers the wage of competing workers: a 10 percent increase in supply reduces …

Persistent link: https://www.econbiz.de/10012468943

Optimal price setting with observation and menu costs

Alvarez, Fernando E. - 2010

We model the optimal price setting problem of a firm in the presence of both information and menu costs. In this problem the firm optimally decides when to collect costly information on the adequacy of its price, an activity which we refer to as a price "review". Upon each review, the firm...

Persistent link: https://www.econbiz.de/10012462800

Bounds on Elasticities with Optimization Frictions : A Synthesis of Micro and Macro Evidence on Labor Supply

Chetty, Raj - 2009

How can price elasticities be identified when agents face optimization frictions such as adjustment costs or inattention? I derive bounds on structural price elasticities that are a function of the observed effect of a price change on demand, the size of the price change, and the degree of...

Persistent link: https://www.econbiz.de/10012463033

Monetary Non-Neutrality in a Multi-Sector Menu Cost Model

Nakamura, Emi - 2008

Empirical evidence suggests that as much as 1/3 of the U.S. business cycle is due to nominal shocks. We calibrate a multi-sector menu cost model using new evidence on the cross-sectional distribution of the frequency and size of price changes in the U.S. economy. We augment the model to...

Persistent link: https://www.econbiz.de/10012464646

Monopoly and the Incentive to Innovate When Adoption Involves Switchover Disruptions

Holmes, Thomas J. - 2008

When considering the incentive of a monopolist to adopt an innovation, the textbook model assumes that it can instantaneously and seamlessly introduce the new technology. In fact, firms often face major problems in integrating new technologies. In some cases, firms have to (temporarily) produce...

Persistent link: https://www.econbiz.de/10012464783

Prices and Market Shares in a Menu Cost Model

Burstein, Ariel - 2007

Pricing complementarities play a key role in determining the propagation of monetary disturbances in sticky price models. We propose a procedure to infer the degree of firm-level pricing complementarities in the context of a menu cost model of price adjustment using data on prices and market...

Persistent link: https://www.econbiz.de/10012465194

Idiosyncratic Shocks and the Role of Nonconvexities in Plant and Aggregate Investment Dynamics

Khan, Aubhik - 2007

We study a model of lumpy investment wherein establishments face persistent shocks to common and plant-specific productivity, and nonconvex adjustment costs lead them to pursue generalized (S,s) investment rules. We allow persistent heterogeneity in both capital and total factor productivity...

Persistent link: https://www.econbiz.de/10012465811

Equivalence Results for Optimal Pass-Through, Optimal Indexing to Exchange Rates, and Optimal Choice of Currency for Export Pricing

Engel, Charles - 2005

Firms sometimes write price lists or catalogs for their exports, so they set prices for a period of time and do not adjust prices during that interval in response to changes in their environment. The firm sets the price either in its own currency or the importer's currency. This paper draws a...

Persistent link: https://www.econbiz.de/10012467476

1
2
3
4
5
6
7
8
9
Next
Last