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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This, and other unfavorable litigation and loss adjustment cost trends, led to a strong rise in non-catastrophe loss ratios in the Florida homeowners' insurance market and, consequently, approved rate increases to counter the exponential growth in social inflation costs associated with homeowner property losses.
Furthermore, accumulation of foreign reserves involve two kinds of costs, the opportunity cost and the adjustment cost and they cannot say holding maximum level of reserves is beneficial for the economy.
Following Elekdag and Tchakarov (2007) and Devereux, Lane, and Xu (2006), we set the inverse of intertemporal elasticity of substitution [sigma], elasticity of labor supply [phi], and capital adjustment cost parameter [[psi].sup.K] to 2, 1, and 12, respectively.
At the same time, the expected results of adjustment speed would indirectly provide the level of adjustment cost that hinder the adjustment process.
Second, the marginal intra-industry trade and adjustment cost indexes show that the Colombian industry is in potential intra-industry trade scenarios, wherefore adjustment pressures arising from the pattern of trade are lower.
Average generation cost on a net basis went down by 23% MoM to Rs4.13/KwH (excluding adjustment cost of Rs1.99/KwH) led by lower dependence on FO.
Adjustment cost is represented by the speed with which banks adjust their capital between two periods.
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.
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.
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.
The adjustment cost parameter [gamma] is set to 80.
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.