Financial/Actuarial Mathematics Seminar

Academic Year 2005-2006: Thursdays 3:10-4:00, 3088 East Hall

Optimal firm employment under firing costs and delays

Tim Maull

Department of Industrial and Operations Engineering, University of Michigan

March 23, 2006

Abstract
We analyze how firing costs as well as firing delays affect a firm's labor market demand. We solve the firm's optimal hiring and firing policies by using stochastic control. Then we study the properties of the optimal solution as well as comparative statics. This is joint work with Jussi Keppo.

Abstract

We analyze how firing costs as well as firing delays affect a firm's labor market demand. We solve the firm's optimal hiring and firing policies by using stochastic control. Then we study the properties of the optimal solution as well as comparative statics. This is joint work with Jussi Keppo.

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