Firing Costs and Business Cycle Fluctuations

Marcelo Veracierto

No 590, 2004 Meeting Papers from Society for Economic Dynamics

Abstract: This paper evaluates to what extent the introduction of firing costs can affect the aggregate dynamics of a neoclassical growth model with heterogeneous establishments. Similarly to the previous literature, firing costs are found to have large steady-state effects. However, they have no important effects on business cycle dynamics: Aggregate employment fluctuations are somewhat smaller when the firing costs are introduced, but most of the effects turn out to be insignificant

Keywords: Firing Costs; Business Cycles (search for similar items in EconPapers)
JEL-codes: E20 E32 J65 (search for similar items in EconPapers)
Date: 2004
New Economics Papers: this item is included in nep-dge, nep-lab and nep-mac
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: FIRING COSTS AND BUSINESS CYCLE FLUCTUATIONS (2008)
Working Paper: Firing Costs and Business Cycle Fluctuations (2004)
Working Paper: Firing costs and business cycle fluctuations (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed004:590

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