On the optimality of cyclical employment policies: A Numerical Investigation

✍ Scribed by Alois Steindl; Gustav Feichtinger; Richard F. Hartl; Gerhard Sorger

• Book ID: 104293485
• Publisher: Elsevier Science
• Year: 1986
• Tongue: English
• Weight: 400 KB
• Volume: 10
• Category: Article
• ISSN: 0165-1889
• DOI: 10.1016/s0165-1889(86)80003-3

✦ Synopsis

A two-state variable continuous time control model of optimal employment of a protit-maximizing firm with convex labour adjustment costs is considered. The model is analyzed numerically. It is shown that a cyclical hiring and firing policy is optimal.