firms to cut investment, employment, and borrowing. We conclude that financial market fluctuations affect even private firms …

associated with it. In particular, we distinguish between employment, hours and effort per worker, and allow for adjustment costs … associated with employment changes. We assume that the requirement function for effective hours has a general trans …-logarithmic form, and derive an estimable system of Euler equations for inventories and employment with implied cross …

. Most firms revise downward their expectations for sales, orders, employment, and investment, while prices are expected to …