Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/19357
Authors: 
Chen, Yu-Fu
Funke, Michael
Year of Publication: 
2002
Series/Report no.: 
HWWA Discussion Paper 196
Abstract: 
The standard literature on working time has modelled the decisions of firms in a deterministic framework in which firms can choose between employment and overtime (given mandated standard hours). Contrary to this approach, we follow the real options approach, which allows us to investigate the value to a firm of waiting to adjust labour when the firm´s revenues in domestic currency are stochastic and adjustment costs are sunk. The simulations reject the null hypothesis that all exchange rate regimes obey common employment adjustment thresholds.
Subjects: 
Real Option Theory
Uncertainty
Working Time
Employment
Labour Demand
Exchange Rates
JEL: 
J23
E24
D81
F31
Document Type: 
Working Paper

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