Investissement et embauche avec coûts d'ajustement fixes et asymétriques

Xavier Fairise () and Jérôme Glachant ()
Additional contact information
Jérôme Glachant: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

Working Papers from HAL

Abstract: A firm operating in a deterministic and continuous time world uses a simple Cobb-Douglas technology with diminishing returns and faces complex adjustment costs of its factors. On the one hand, a proportional cost of employment applies to the irreversible labor factor. On the other hand, investing requires a fixed cost that is proportional to the firm's workforce. The firm then determines its hiring and investment policy which maximizes the discounted value of its cash flows. The combination of fixed and variable costs involves a non-trivial cycle of factor adjustment in which there is a continuous hiring episode followed by a hiring freeze followed by a simultaneous spike in investment and hiring. The article proposes a numerical assessment of the effects of fixed cost size on the life cycle of the firm.

Keywords: Investment; hiring; fixed cost; asymmetric linear costs; irreversibility; Investissement; embauche; coût fixe; coûts linéaire asymétrique; irréversibilité (search for similar items in EconPapers)
Date: 2018-09-21
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01878454
References: Add references at CitEc
Citations:

Downloads: (external link)
https://shs.hal.science/halshs-01878454/document (application/pdf)

Related works:
Journal Article: Investissement et embauche avec coûts d’ajustement fixes et asymétriques (2019)
Working Paper: Investissement et embauche avec coûts d'ajustement fixes et asymétriques (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:halshs-01878454

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().