Differing factor adjustment costs across industries: Evidence from Japan
Hirokazu Mizobata ()
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Hirokazu Mizobata: Institute of Economic Research, Kyoto University
No 885, KIER Working Papers from Kyoto University, Institute of Economic Research
In this Paper, we use industry data from Japan to examine the joint behavior of investment and hiring. We estimate factor adjustment costs in industries and focus on the industrial difference in such costs. Our analisis reveals that heavy industries such as steel and transport equipment need relatively large adjustment costs. A comparison between the U.S and Japan reveals thet the ratio of labor adjustment costs in total adjustment costs tends to be higher in Japan. Our findings are useful in considering the mechanism of factor adjustment costs.
Keywords: joint estimation of investment and hiring; substitutability; complementarity; industry-level adjustment costs (search for similar items in EconPapers)
JEL-codes: E22 E24 J23 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:kyo:wpaper:885
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