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Learning as a Rational Foundation for Macroeconomics and Finance

Evans, George W.; Honkapohja, Seppo - 2011

Expectations play a central role in modern macroeconomics. The econometric learning approach, in line with the cognitive consistency principle, models agents as forming expectations by estimating and updating subjective forecasting models in real time. This approach provides a stability test for...

Persistent link: https://www.econbiz.de/10014183715

Learning as a rational foundation for macroeconomics and finance

Evans, George W.; Honkapohja, Seppo - 2011

Persistent link: https://www.econbiz.de/10008909537

'Relative Movements of Real Wages and Output' – How Does Keynes's 1939 Essay Relate to His Principle of Effective Demand?

Hartwig, Jochen - 2014

General Theory because, in this essay, Keynes relaxed his core assumption of decreasing marginal returns to labour. Non …-decreasing marginal returns, however, do not sit comfortably with the prime innovation of the General Theory: the Principle of Effective … General Theory thus has to be put into perspective …

Persistent link: https://www.econbiz.de/10013056413

The struggle over the real wage in the monetary production economy

Matallana, Hernando - 2009

Persistent link: https://www.econbiz.de/10003844619

Wage cyclicality and labour market institutions

Pereira, João Manuel; Ramos, Raúl; Martins, Pedro S. - 2024

Do labour institutions influence how wages respond to the business cycle? Such responsiveness can then shape several economic outcomes, including unemployment. In this paper, we examine the role of two key labour market institutions - collective bargaining and temporary contracts - upon wage...

Persistent link: https://www.econbiz.de/10014486321

Real Wages and the Cycle : The View from the Frequency Domain

Hart, Robert A.; Malley, James R.; Woitek, Ulrich - 2021

In the time domain, the observed cyclical behavior of the real wage hides a range of economic influences that give rise to cycles of differing lengths and strengths. This may serve to produce a distorted picture of wage cyclicality. Here, we develop frequency domain methods that allow us...

Persistent link: https://www.econbiz.de/10013320990

Resurrecting the Role of the Product Market Wedge in Recessions

Bils, Mark - 2014

Employment and hours appear far more cyclical than dictated by the behavior of productivity and consumption. This puzzle has been called "the labor wedge" -- a cyclical intratemporal wedge between the marginal product of labor and the marginal rate of substitution of consumption for leisure. The...

Persistent link: https://www.econbiz.de/10012458110

The Labor Wedge : MRS vs. MPN

Karabarbounis, Loukas - 2013

Do fluctuations of the labor wedge, defined as the gap between the firm's marginal product of labor (MPN) and the household's marginal rate of substitution (MRS), reflect fluctuations of the gap between the MPN and the real wage or fluctuations of the gap between the real wage and the MRS? For...

Persistent link: https://www.econbiz.de/10012459647

Measuring the Cyclicality of Real Wages : How Important is Composition Bias

Solon, Gary - 1992

In the period since the 1960's, as in other periods, aggregate time series on real wages have displayed only modest cyclicality. Macroeconomists therefore have described weak cyclicality of real wages as a salient feature of the business cycle. Contrary to this conventional wisdom, our analysis...

Persistent link: https://www.econbiz.de/10012474765

Real Wages Over The Business Cycle

Barsky, Robert B. - 1989

This paper is an examination of cyclical real wage behavior in the United States since World War II. Like most previous aggregate studies. ours finds little cyclicalitv in aggregate industry real wage data. On the other hand, our analysis of longitudinal microdata from the Panel Study of Income...

Persistent link: https://www.econbiz.de/10012476166