(In)flexibility and the level of output: a word of caution

Authors
Eeckhoudt, L Treich, N
Citation
L. Eeckhoudt et N. Treich, (In)flexibility and the level of output: a word of caution, ECON LETT, 63(3), 1999, pp. 335-339
Citations number
5
Categorie Soggetti
Economics
Journal title
ECONOMICS LETTERS
ISSN journal
01651765 → ACNP
Volume
63
Issue
3
Year of publication
1999
Pages
335 - 339
Database
ISI
SICI code
0165-1765(199906)63:3<335:(ATLOO>2.0.ZU;2-1
Abstract
It is widely believed that more flexibility stimulates output and investmen t. In this letter, we show that this view is too optimistic. Indeed, with t he help of a simple model, improvements in flexibility are shown to have op posite effects on the level of output. (C) 1999 Published by Elsevier Scien ce S.A. All rights reserved.