Inefficient continuation decisions, job creation costs, and the cost of business cycles

This paper develops a model according to which the costs of business cycles are nontrivial because they reduce the average level of output. The reason is an interaction between job creation costs and an agency problem. The agency problem triggers separations during economic downturns even though bot...

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Bibliographic Details
Main Authors: Den Haan, W, Sedlacek, P
Format: Book
Published: Wiley 2014