Interrelated Factor Demand with Nonconvex Adjustment Costs: a Note
| Title: | Interrelated Factor Demand with Nonconvex Adjustment Costs: a Note |
|---|---|
| Authors: | Wilko Letterie; Øivind A. Nilsen; Gerard Pfann; Jel Code D |
| Contributors: | The Pennsylvania State University CiteSeerX Archives |
| Source: | http://edocs.ub.unimaas.nl/loader/file.asp?id=1297. |
| Publication Year: | 2008 |
| Collection: | CiteSeerX |
| Description: | In this paper we develop a model to describe a firm’s demand for two production factors which is subject to the presence of nonconvex adjustment costs. In our model simultaneous adjustment of these two production factors may either increase or decrease the total costs incurred by the firm. The magnitude of this change in total costs ultimately determines the likelihood of joint adjustment. We also show that the importance of interrelation is suppressed by large fixed costs. |
| Document Type: | text |
| Language: | English |
| Relation: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.548.3328; http://edocs.ub.unimaas.nl/loader/file.asp?id=1297 |
| Availability: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.548.3328; http://edocs.ub.unimaas.nl/loader/file.asp?id=1297 |
| Rights: | Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| Accession Number: | edsbas.D3A6BBFB |
| Database: | BASE |