Monopolistic competition, costs of adjustment, and the behavior of European manufacturing employment

摘要: Abstract A dynamic model of employment under monopolistic competition is derived and estimated with manufacturing data from European countries the U.S. While there only weak evidence higher quadratic adjustment costs in Europe at annual sampling frequencies, imputed labor charges linear component hiring firing are significantly magnitudes consistent EC survey evidence. Evidence monopolistically competitive behavior found larger economies. The pattern rejection model's overidentifying restrictions covarience residuals absence operative quantity constraints on firms.