{"id":420,"date":"2026-04-27T14:40:17","date_gmt":"2026-04-27T13:40:17","guid":{"rendered":"https:\/\/www.farhi-innovation-lab.fr\/?post_type=publication&#038;p=420"},"modified":"2026-04-27T14:40:18","modified_gmt":"2026-04-27T13:40:18","slug":"adjustment-costs-and-factor-demand-new-evidence-from-firms-real-estate","status":"publish","type":"publication","link":"https:\/\/www.farhi-innovation-lab.fr\/fr\/publication\/adjustment-costs-and-factor-demand-new-evidence-from-firms-real-estate\/","title":{"rendered":"Adjustment Costs and Factor Demand: New Evidence from Firms\u2019 Real Estate"},"content":{"rendered":"<p class=\"wp-block-paragraph\">We study corporate real estate frictions and their effect on firm dynamics and labour demand. We build and simulate a general equilibrium model with heterogeneous firms that predicts the response of firms to a productivity shock in the presence of fixed adjustment costs on real estate. Using a large firm-level database merged with local real estate prices, we then exploit variations in the tax on capital gains to document a causal effect of adjustment costs on firms\u2019 labour demand and derive new results on the causes and implications of firms\u2019 local relocation.<\/p>","protected":false},"excerpt":{"rendered":"<p>We study corporate real estate frictions and their effect on firm dynamics and labour demand. We build and simulate a general equilibrium model with heterogeneous firms that predicts the response of firms to a productivity shock in the presence of fixed adjustment costs on real estate. Using a large firm-level database merged with local real [&hellip;]<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":true},"thematique":[117,102],"type-de-publication":[50],"class_list":["post-420","publication","type-publication","status-publish","hentry","thematique-firm-dynamics","thematique-labor-market","type-de-publication-publication"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Adjustment Costs and Factor Demand: New Evidence from Firms\u2019 Real Estate - Farhi Innovation Lab<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Adjustment Costs and Factor Demand: New Evidence from Firms\u2019 Real Estate - Farhi Innovation Lab\" \/>\n<meta property=\"og:description\" content=\"We study corporate real estate frictions and their effect on firm dynamics and labour demand. We build and simulate a general equilibrium model with heterogeneous firms that predicts the response of firms to a productivity shock in the presence of fixed adjustment costs on real estate. 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