the investment rate depends mostly on future returns. -- gross investment ; gross hiring ; frictions ; business cycles …The decisions of firms on investment and hiring play a crucial role in business cycle fluctuations. This paper explores ….S. data, it shows that the model with frictions is able to fit the data. A key element is the interaction of hiring and …

Hiring is a costly activity reflecting firms' investment in their workers. Micro-data shows that hiring costs involve … hiring frictions interacting with price frictions. This mechanism generates strong propagation and amplification of all key … production disruption. Thus, cyclical fluctuations in the value of output, induced by price frictions, have consequences for the …