Mumtaz, Haroon; Zanetti, Francesco - In: Journal of Economic Dynamics and Control 51 (2015) C, pp. 341-355
This paper assesses various capital and labor adjustment costs functions estimating a general equilibrium framework … with Bayesian methods using US aggregate data. The estimation finds that the adjustment costs are convex in both capital … of factor adjustment costs to exogenous disturbances, and to establish that shocks to technology and the job separation …