Title: Firing costs and business cycle fluctuations
Description: "This paper evaluates to what extent the introduction of firing costs can affect the aggregate dynamics of a neoclassical growth model with hetrogeneous establishments.  Similarly to the previous literature, firing costs are found to have large steady- state effcts.  However, they have no important effects on business cycle dynamics: Aggregate employment fluctuations are somewhat smaller when the firing costs are introduced, but most of the effects turn out to be insignificant"--Federal Reserve Bank of Chicago web site.