@article{283b74631a924d819f7b2ef96d0cf9b2,
title = "An equilibrium model of quits under optimal contracting",
abstract = "This article develops an equilibrium model of quits in a labor market and examines the effect of contracting under asymmetric information, when compared with symmetric information and noncontractual base lines. We demonstrate that quits increase in periods of high output, without postulating exogenous price rigidity.",
author = "Kahn, {Charles M.} and Longhofer, {Stanley D.}",
note = "Funding Information: Correspondence to: Stanley D. Longhofer, Department of Economics, University of Illinois at Urbana-Champaign, David Kinley Hall, Box 64, 1407 West Gregory Drive, Urbana. IL 61801, U.S.A. *We are grateful to Robert Topel, Joseph Swierzbinski. Ed Prescott, the editors of this journal, two anonymous referees and participants in seminars at the Universities of Chicago, Rochester, Washington, British Columbia, California at Irvine and the National Bureau of Economic Research and the Minneapolis Federal Reserve. Funding was provided by the National Science Foundation. {\textquoteleft}The contemporaneous correlation between quits and GNP across the business cycle is 0.893 [Prescott et al. (1983)].",
year = "1993",
month = aug,
doi = "10.1016/0014-2921(93)90131-S",
language = "English (US)",
volume = "37",
pages = "1203--1222",
journal = "European Economic Review",
issn = "0014-2921",
publisher = "Elsevier B.V.",
number = "6",
}