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dc.contributor.authorGöcke, Matthiasen_US
dc.date.accessioned2009-08-26en_US
dc.date.accessioned2010-03-05T15:38:25Z-
dc.date.available2010-03-05T15:38:25Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/30081-
dc.description.abstractA simple model evaluating a firm’s optimal employment reaction to an imminent recession is presented. Firing costs shelter employment – 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.en_US
dc.language.isoengen_US
dc.publisherUniv., Dep. of Business Administration & Economics Marburgen_US
dc.relation.ispartofseriesJoint discussion paper series in economics 2009,18en_US
dc.subject.jelD81en_US
dc.subject.jelJ63en_US
dc.subject.ddc330en_US
dc.subject.keywordFiring costs and uncertaintyen_US
dc.subject.keywordprobabilityen_US
dc.subject.keywordduration and size of recessionen_US
dc.titleFiring versus continuing employment if an economic setback is expecteden_US
dc.typeWorking Paperen_US
dc.identifier.ppn603933297en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:MAGKS Joint Discussion Paper Series in Economics, Universität Marburg

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