In this paper we present and estimate an adjustment cost model of industry employment which takes explicit account of both expectations and aggregation over different labour types. The resulting model is subject to a large number of tests and is a highly robust representation of the data. Finally forecasts are produced for manufacturing employment up to 1990.

Journal Article M. J. Farrell Get access Peter Hammond, Peter Hammond Search for other works by this author on: Oxford Academic Google Scholar Stephen Nickell Stephen Nickell Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 43, Issue 1, February 1976, Page 1, https://doi.org/10.1093/restud/43.1.1 Published: 01 February 1976