Mota, Paulo R.; Vasconcelos, Paulo B. - In: Journal of Post Keynesian Economics 35 (2012) 1, pp. 93-112
This study provides new evidence on the effects of nonconvex employment adjustment costs at the aggregate level. Using the Preisach model of hysteresis, we find that hysteresis commonly found at the firm level due to nonconvex adjustment costs do not completely vanish at the macro level....