adjustment costs

A more extensive discussion of adjustment costs can be found in Pain (1990).

Obviously, there will be adjustment costs, and we will help them on this score as well.

Adjustment costs can be a major obstacle to Romanian farmers taking advantage of the common agricultural policy.

However, the restructuring and adjustment costs required to prevent the collapse of local industries, particularly in developing countries, is a global concern.

There will be adjustment costs.

In this framework, several scholars and policy-makers have argued that trade-related adjustment costs merit a policy response.

Higher order lagged dependent variables may be introduced by invoking additional adjustment costs arising, for example, from an acceleration in portfolio investment.

Generally adjustment costs or distribution effects are thought to be small if the MIIT index is high.

The alternative justifications for higher order adjustment costs considered there require a number of assumptions at least as great as for the quadratic cost case.

First, the costs of inflation to a society are discussed in detail; these include adjustment costs, balance of payments problems, redistribution effects and reduced economic efficiency.

Furthermore, labor reallocation from inefficient to competitive sectors aimed at realizing the benefits of trade can be impeded by several obstacles described above, prolonging the transition period and increasing the adjustment costs.

If there are small administrative costs of changing prices (so-called 'menu costs'), it may not be worth the firm changing its price as the adjustment costs may dominate the small gain in profitability.

Free trade will produce modest gains at the global level, partly because the adjustment costs which countries have to deal with when they undertake the liberalisation process promoted by the industrialised countries can be greater than the benefits.

"Capital Immobility, Adjustment Costs, and the Theoretical Foundations of Income-Expenditure Models," Journal of Political Economy, December 1978, (with J. Allan Hynes).

The concept is thought to be useful for ascertaining the amount of adjustment costs associated with changing trade flows or the degree to which changes in trade might be responsible for changes in the distribution of income.

The lagged dependent variables suggest that adjustment costs are of importance whilst the presence of lagged determinants of the desired stock suggests that there is more in the data than a simple first-order partial adjustment model might permit.

Whatever the nature of price adjustment costs, one important development in establishing the micro-foundations of Keynesian wage or price rigidity has emphasized that these costs need not be substantial to lead to rigidities which can have important macroeconomic consequences.

It is also important to emphasise that there will be no additional costs for businesses in the sector, which are protected from the risk of unbearable adjustment costs, thereby ensuring a fair balance between passenger rights and guarantees for small and medium-sized enterprises.

Among the most significant factors for efficiency losses from trade are inaccurate prices due to significant externalities that cause misidentification of comparative advantages, unstable international markets that create macro inefficiencies, and adjustment costs of moving people in and out of industries that can be considerable.

Then the flow of net investment per unit of time is determined by balancing losses from having a less-than-optimal level of capital with the adjustment costs of installing new capital; these adjustment costs in per-unit terms may be an increasing function of the speed of installation.