Cho, Jang-Ok; Cooley, Thomas; Phaneuf, Louis - Centre de Recherche sur l'Emploi et les Fluctuations … - 1994
We use a dynamic general equilibrium model to obtain quantitative estimates of the welfare costs of nominal wage … shocks do not affect the welfare costs very much. The welfare costs of nominal wage contracting depend also on the elasticity … the size and the persistence of real and nominal shocks. …