Holm, Pasi; Honkapohja, Seppo; Koskela, Erkki - C.E.P.R. Discussion Papers - 1991
determined wages. The novelty is to incorporate investment and capital decisions by firms. The subgame-perfect Nash equilibrium … and its comparative statics for wages, capital stock and employment are characterized in various cases. The model is then … describing the determination of capital stock, wages and hours of work performs reasonably well; there are no obvious signs of …