Asymmetric adjustment costs and sectoral shifts

2011 ◽  
pp. 251-264 ◽  
Author(s):  
Laurence Weiss
Keyword(s):  
Adjustment Costs ◽  
Asymmetric Adjustment ◽  
Sectoral Shifts

ARE TECHNOLOGY SHOCKS NONLINEAR?

1999 ◽  
Vol 3 (4) ◽  
pp. 506-533 ◽  
Author(s):  
Sumru Altuğ ◽  
Richard A. Ashley ◽  
Douglas M. Patterson
Keyword(s):  
Labor Markets ◽  
Statistical Tests ◽  
Simulated Data ◽  
Adjustment Costs ◽  
Technology Shocks ◽  
Labor Input ◽  
Asymmetric Adjustment ◽  
Aggregate Production Function ◽  
Capital Services ◽  
Bds Test

The behavior of postwar real U.S. GNP, the inputs to an aggregate production function, and several formulations of the associated Solow residuals for the presence of nonlinearities in their generating mechanisms are examined. Three different statistical tests for nonlinearity are implemented: the McLeod-Li test, the BDS test, and the Hinich bicovariance test. We find substantial evidence for nonlinearity in the generating mechanism of real GNP growth but no evidence for nonlinearity in the Solow residuals. We further find that the generating mechanism of the labor input series is nonlinear, whereas that of the capital services input appears to be linear. We therefore conclude that the observed nonlinearity in real output arises from nonlinearities in the labor markets, not from nonlinearities in the technical shocks driving the system. Finally, we investigate the source of the nonlinearities in the labor markets by examining simulated data from a model of the Dutch economy with asymmetric adjustment costs.

Two-stage stochastic minimum cost consensus models with asymmetric adjustment costs

2021 ◽  
Vol 71 ◽  
pp. 77-96
Author(s):  
Huanhuan Li ◽  
Ying Ji ◽  
Zaiwu Gong ◽  
Shaojian Qu
Keyword(s):  
Minimum Cost ◽  
Adjustment Costs ◽  
Asymmetric Adjustment ◽  
Two Stage ◽  
Consensus Models
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