Fondazione Eni Enrico Mattei Dynamic Labour Demand with Lumpy and Kinked Adjustment Costs Paola Rota* NOTA DI LAVORO 20.2001 APRIL 2001 ETA – Economic Theory and Applications *University of Modena and Reggio Emilia, Italy This paper can be downloaded without charge at: The Fondazione Eni Enrico Mattei Note di Lavoro Series Index: http://www.feem.it/web/activ/_activ.html Social Science Research Network Electronic Paper Collection: http://papers.ssrn.com/paper.taf?abstract_id Fondazione Eni Enrico Mattei Corso Magenta, 63, 20123 Milano, tel. +39/02/52036934 – fax +39/02/52036946 E-mail: [email protected] C.F. 97080600154 '\QDPLF/DERXU'HPDQGZLWK/XPS\DQG.LQNHG$GMXVWPHQW&RVWV 3DROD5RWD 8QLYHUVLWD©GL0RGHQDH5HJJLR(PLOLD -DQXDU\ 5HYLVHG6HSWHPEHU 6HFRQG5HYLVLRQ-XO\ $EVWUDFW :H DQDO\]HWKHG\QDPLFVRIILUPV©HPSOR\PHQWGHFLVLRQVZKLFKXQGHUOLHOXPS\DQGNLQNHG DGMXVWPHQWFRVWV:HFRQVLGHUDG\QDPLFVWUXFWXUDOPRGHOLQZKLFKLQHDFKSHULRGILUPVIDFHD FKRLFH RI ZKHWKHU WR YDU\ WKH ODERXU LQSXW RU WR SRVWSRQH WKH 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