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CHRISTOPHER A. PISSARIDES
Christopher Pissarides (Greek: Χριστόφορος Αντονίου Πισσαρίδης ) is a Greek-Cypriot economist at the London School of Economics. He research interests focus on macroeconomics, labor economics and economic growth.
As an example of his work, in 1994 Pissarides and Dale T. Mortensen published Job Creation and Job Destruction in the Theory of Unemployment in the Review of Economic Studies to describe sticky wages. They theorized that job markets feature an asymmetric degree of irreversibility, thus it is more prone to firing than to hiring. Firing someone is very reversible (simply rehire them) thus it is much more sensitive to change (it had a high elasticity). But the investment for hiring someone for a new position is much harder to reverse; there are a lot of sunk costs. Thus people get fired more easily than they get hired.
The theory implies that in a downturn, the number of destroyed jobs happens first, it happens more and small changes can cause huge fluctuations in the market.
This theory was modeled after the work of Fischer Black.
[edit] See also
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