scholarly journals The estimation of asymmetric adjustment costs for the number of workers and working hours – empirical evidence from Japanese industry data

2009 ◽  
Vol 16 (10) ◽  
pp. 995-998 ◽  
Author(s):  
Kenji Azetsu ◽  
Mototsugu Fukushige
Keyword(s):  
Empirical Evidence ◽  
Working Hours ◽  
Adjustment Costs ◽  
Industry Data ◽  
Asymmetric Adjustment ◽  
Japanese Industry

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.

NOMINAL RIGIDITIES, RESIDENTIAL INVESTMENT, AND ADJUSTMENT COSTS

2009 ◽  
Vol 14 (1) ◽  
pp. 136-148 ◽  
Author(s):  
Charles T. Carlstrom ◽  
Timothy S. Fuerst
Keyword(s):  
General Equilibrium ◽  
Empirical Evidence ◽  
Equilibrium Model ◽  
Durable Goods ◽  
Adjustment Costs ◽  
American Economic Review ◽  
Housing Construction ◽  
Residential Housing ◽  
Habit Persistence ◽  
Residential Investment

Evidence suggests that durable goods and residential housing are more flexibly priced than nondurables and services. Using a standard sticky price general equilibrium model, Barsky, House, and Kimball [American Economic Review 97(3) (2007), 984–998] demonstrate that if durable goods are flexibly priced and nondurables are sticky, then a monetary contraction leads to an expansion in production in the durable sector. This is wildly at odds with the empirical evidence. This paper demonstrates that if three features are added to the model (sticky nominal wages, housing construction adjustment costs, and habit persistence in consumption), it delivers sectoral implications that are broadly consistent with the data.

Information Technology Investment and Commercialized Innovation Performance: Dynamic Adjustment Costs and Curvilinear Impacts

MIS Quarterly ◽  
2021 ◽  
Vol 45 (3) ◽  
pp. 1007-1024
Author(s):  
Prasanna Karhade ◽  
◽  
John Qi Dong ◽  
Keyword(s):  
Information Technology ◽  
Empirical Evidence ◽  
Broad Spectrum ◽  
Adjustment Costs ◽  
Innovation Performance ◽  
Curvilinear Relationship ◽  
Dynamic Adjustment ◽  
It Investment ◽  
Technology Investment ◽  
Information Technology Investment

Firms’ investment in information technology (IT) has been widely considered to be a key enabler of innovation. In this study, we integrate prior findings on the augmenting pathways (where IT investment supports innovation) with a new theory explaining the suppressing pathways (where dynamic adjustment costs associated with large IT investment can be detrimental to innovation) to propose an overall inverted U-shaped relationship between IT investment and commercialized innovation performance (CIP). To test our theory, we analyze a unique panel dataset from the largest economy in Europe and discovered a curvilinear relationship between IT investment and CIP for firms across a broad spectrum of industries. Our research presents empirical evidence corroborating the augmenting and suppressing pathways linking IT investment and CIP. Our findings serve as a cautionary signal to executives, discouraging overinvestment in IT.

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

scholarly journals An Analysis of the Behaviour of Prime Lending Rates in Sri Lanka

2018 ◽  
Vol 5 (2) ◽  
pp. 121-138
Author(s):  
W. S. Navin Perera
Keyword(s):  
Monetary Policy ◽  
Sri Lanka ◽  
Central Bank ◽  
Empirical Evidence ◽  
Commercial Banks ◽  
Asymmetric Adjustment ◽  
Marginal Impact ◽  
Lending Rate ◽  
Lending Rates ◽  
Prime Rate

The prime lending rate is the rate at which commercial banks loan funds to their most creditworthy customers, and hence, is usually lower than other market lending rates; reason why it is considered a “base or reference rate”. In Sri Lanka, the Central Bank of Sri Lanka (CBSL) has been compiling the Average Weighted Prime Lending Rate (AWPR) since January 1986. This paper examines the determinants of prime lending rates in Sri Lanka using weekly data from January 2004 to June 2013, while attempting to capture any asymmetries in prime rate changes to monetary policy decisions. Empirical evidence suggests that the prime rate is highly persistent, while the call money rate also remains a key determinant. However, domestic liquidity was statistically insignificant and even if it was, it has only a marginal impact in determining the prime lending rate. Furthermore, there is also evidence of asymmetric adjustment in AWPR.

Sign in / Sign up

Export Citation Format

Share Document