@techreport{Gocke2009Firing,
abstract = {A simple model evaluating a firm&#x2019;s optimal employment reaction to an imminent recession is presented. Firing costs shelter employment &#x2013; and this effect is typically amplified by uncertainty due to an option value of waiting. However, this job protection effect is reduced if the expected probability of a setback increases, and if the expected duration and size of a recession grows. If a severe recession is expected with a high probability the option to wait with firing looses its value, thus, immediate layoffs and market exits become the optimal strategy even before the recession turns out to be actual.},
address = {Marburg},
author = {Matthias G\"{o}cke},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {D81; J63; 330; Firing costs and uncertainty; probability; duration and size of recession},
language = {eng},
number = {2009,18},
publisher = {Univ., Dep. of Business Administration & Economics},
title = {Firing versus continuing employment if an economic setback is expected},
type = {Joint discussion paper series in economics},
url = {http://hdl.handle.net/10419/30081},
year = {2009}
}
