Danthine, Jean-Pierre; Kurmann, Andre - C.E.P.R. Discussion Papers - 2007
We develop a reciprocity-based model of wage determination and incorporate it into a modern dynamic general equilibrium … a negligible role in wage setting. These results are broadly consistent with micro-studies on reciprocity in labour … postulating nominal wage contracts. In particular, the reciprocity model is more successful in generating the sharp and …