Profitability, investment, and efficiency wages (Q955435)
From MaRDI portal
 | This is the item page for this Wikibase entity, intended for internal use and editing purposes. Please use this page instead for the normal view: Profitability, investment, and efficiency wages |
scientific article; zbMATH DE number 5369101
| Language | Label | Description | Also known as |
|---|---|---|---|
| English | Profitability, investment, and efficiency wages |
scientific article; zbMATH DE number 5369101 |
Statements
Profitability, investment, and efficiency wages (English)
0 references
20 November 2008
0 references
Summary: We examine a model that blends the neoclassical theory of investment with an intertemporal efficiency wage model with turnover costs. Investment decisions in capital are associated with the allocation of labor and the determination of efficiency wages. The model relates Tobin's \(q\) to efficiency wages and, in particular, to the Solow condition. It provides a general framework to analyze firm's intertemporal choices of capital, labor and efficiency wages.
0 references
