Wages, Regime Switching, and Cycles

This book is based on three themes: the business cycle, re- gime switching and wages. Each term is linked to the other in a simple and direct way. The business cycle is the main topic, regime switching is a device to generate cycles, and wages is the point of view from which the analysis is conducted. Although the analysis privileges an endogenous and macro approach to business cycles, the more microoriented contributions are also considered. The need for economic justification for macro models and for such dynamic devices as regime-switching models is stressed. The initialpurposes of the book were to update and extend the discussion and the results presented in the previous book, The Labor Market and Business Cycle Theories. The consequences of this effort have materialized in a number of new chapters that has led de facto to a new book, in which the surviving parts have been largely revised