Amaral, Pedro S.; MacGee, James - 2012
average economy-wide real wage varied little over 1929-33, real wages rose significantly in some industries. We calibrate a … two-sector model with intermediates to the 1929 U.S. economy where wages in one sector adjust slowly. We find that nominal … wage rigidities can account for less than a fifth of the fall in GDP over 1929-33. Intermediate linkages play a key role …