A flexible specification of adjustment costs in dynamic factor demand models

Authors
Lundgren, T Sjostrom, M
Citation
T. Lundgren et M. Sjostrom, A flexible specification of adjustment costs in dynamic factor demand models, ECON LETT, 72(2), 2001, pp. 145-150
Citations number
12
Categorie Soggetti
Economics
Journal title
ECONOMICS LETTERS
ISSN journal
01651765 → ACNP
Volume
72
Issue
2
Year of publication
2001
Pages
145 - 150
Database
ISI
SICI code
0165-1765(200108)72:2<145:AFSOAC>2.0.ZU;2-V
Abstract
This paper proposes a flexible form of adjustment cost function. An empiric al illustration shows that the flexible form can detect both convex and non -convex adjustment costs. Furthermore, the flexible form permits testing fo r the experience effect on adjustment cost. (C) 2001 Elsevier Science BN. A ll rights reserved.