Sequentiality Versus Simultaneity: Interrelated Factor Demand
研究了企业调整资本和劳动力是顺序进行还是同时进行，基于挪威制造业工厂数据发现同时调整成本更低，为理解企业动态要素调整提供依据。
Firms may adjust capital and labor sequentially or simultaneously. In this paper, we develop a structural model of interrelated factor demand subject to nonconvex adjustment costs and estimated by simulated method of moments. Based on Norwegian manufacturing industry plant-level data, parameter estimates reveal cost advantages for adjusting capital and making net changes in labor simultaneously. Factor demand models with fully specified interrelated adjustment costs structures perform best to describe the dynamic panel data.