A NOTE ON INFLATION PERSISTENCE IN A FAIR WAGE MODEL OF THE BUSINESS CYCLE

We generalize existing fair wage models to allow effort to vary over the business cycle. When effort is variable, wage fluctuations are partially compensated for by endogenous effort fluctuations, so that the sensitivity of marginal cost to output and employment variations is decreased. This new mec...

Ausführliche Beschreibung

Bibliographische Detailangaben

Veröffentlicht in:	Macroeconomic dynamics 2009-11, Vol.13 (5), p.673-684
Hauptverfasser:	de la Croix, David, de Walque, Gregory, Wouters, Rafael
Format:	Artikel
Sprache:	eng
Schlagworte:	Business cycles Economic theory Efficiency Employment Households Inflation Labor market Macroeconomics Phillips curve Studies Utility functions Wages & salaries
Online-Zugang:	Volltext
Tags:	Tag hinzufügen Keine Tags, Fügen Sie den ersten Tag hinzu!