Title of article
On theemploymenteffectsofproductivityshocks:Theroleof inventories,demandelasticity,andstickyprices$
Author/Authors
YongsungChang، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2008
Pages
16
From page
328
To page
343
Abstract
Whethertechnologicalprogressraisesorlowersemploymentintheshortrunhasbeen
thesubjectofmuchdebateintherecentyears.Weshowthatcross-industrydifferences
in inventoryholdingcosts,demandelasticities,andpricerigiditiespotentiallyallaffect
employmentdecisionsinthefaceofproductivityshocks.Inparticular,theemployment
response toapermanentproductivityshockismorelikelytobepositivethelesscostlyit
is toholdinventories,themoreelasticindustrydemandis,andthemoreflexibleprices
are. Usingdataon4584-digitU.S.manufacturingindustriesovertheperiod1958–1996,
we findstatisticallysignificanteffectsofvariationsininventoryholdingsanddemand
elasticitiesonshort-runemploymentresponses,butlessconclusiveevidencepertaining
to theeffectsofmeasuredpricestickiness.
Keywords
ProductivityEmploymentInventoryinvestmentStickyprices
Journal title
Journal of Monetary Economics
Serial Year
2008
Journal title
Journal of Monetary Economics
Record number
846296
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