Adjustment Costs

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Adjustment Costs

The costs associated with making any changes. For example, one must consider adjustment costs for hiring a new employee, or the costs of lost production in the event of layoffs. All companies have adjustment costs, especially when they seek to achieve greater efficiency.
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t], but if the firm wants to change its capital stock, then an adjustment cost, which is convex in the change [absolute value of [K.
The two BSES discoms have, however, conveyed to the Delhi Electricity Regulatory Commission that absence of cost reflective tariff and denial of Power Purchase Adjustment Cost (PPAC) for the past few months have depleted its financial reserves.
Though there is a decrease in diesel price, electricity cost has gone up by over four per cent making it a balancing act for the fuel adjustment cost (FAC)-lnked tariff revision policy adopted by railways since 2013.
Sudhakar told media persons that the Power Purchase Adjustment Cost (PPAC) which is being currently levied at six to eight percent for all consumers will be finished.
97, and the parameter in the adjustment cost function [gamma], equal to 5.
One weakness is that our estimates of capital's share and the adjustment cost parameter vary across different sets of the testing portfolios.
The second model considers the maximization problem faced by a manager who perceives a downward adjustment cost from cutting payouts when making financial and real decisions within the firm.
Nepra's decision will not be applicable to Peshawar Electric Supply Company (Pesco) since it did not collect the higher fuel adjustment cost because of a stay order it obtained from the Peshawar High Court.
We have suppressed the adjustment cost elasticity in equation 1.
From the Industrial Revolution until very recently, the West's development was free of any environmental restrictions, and the emerging countries believe that they should not have to bear the adjustment cost.
The first sign of fiscal crisis will be a widening of corporate-Treasury yield spreads in a process we call fiscal adjustment cost (FAC) discounting.
The standard errors of the underlying parameters of the model, that is, the adjustment cost parameter, the optimal investment/capital ratio and the market power parameter, (9) are then calculated using the delta method with analytical first derivatives (Oehlert, 1992).