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Contract Duration and Indexation in a Period of Real and Nominal Uncertainty

Christofides, Louis; Peng, Amy Chen - CESifo - 2003

as exceptionally low inflation and substantial fluctuations in nominal and real uncertainty, is used to study the …. Results obtained suggest that expected inflation, nominal and real uncertainty account for most of the secular and cyclical …

Persistent link: https://www.econbiz.de/10005406115

Structural Distortions and Decentralized Fiscal Policies in EMU

Beetsma, Roel; Bovenberg, Lans - CESifo - 2001

The combination of discretionary monetary policy, labor-market distortions and nominal wage rigidity yields an … inflation bias as monetary policy tries to exploit nominal wage contracts to address labour-market distortions Although an … if fiscal policy is set at a higher frequency than nominal wages are. To avoid the associated excessive accumulation of …

Persistent link: https://www.econbiz.de/10005765964

International Outsourcing under Monopolistic Competition: Winners and Losers

Do, Viet; Long, Ngo Van - CESifo - 2007

We show that, even with flexible domestic wages, international outsourcing may worsen the welfare of the home country and reduce the profits of all firms. If wages are rigid, outsourcing is welfare-improving if and only if the sum of the “trade creation” effect and the “exploitation...

Persistent link: https://www.econbiz.de/10005766050

Wage Policy and Endogenous Wage Rigidity: A Representative View From the Inside

Agell, Jonas; Bennmarker, Helge - CESifo - 2002

during the severe recession of the 1990s, only 1.1 percent of workers took a cut in regular nominal pay. We trace the lack of …

Persistent link: https://www.econbiz.de/10005051594

The Pathological Export Boom and the Bazaar Effect - How to Solve the German Puzzle

Sinn, Hans-Werner - CESifo - 2006

Germany is the laggard of Europe, yet the country is world champion in merchandise exports. The paper tries to solve this theoretical and empirical puzzle by diagnosing a “pathological export boom” and a “bazaar effect”. Excessively high wages defended by unions and the welfare state...

Persistent link: https://www.econbiz.de/10005405720

Endogenous Wage Rigidity

Agell, Jonas; Bennmarker, Helge - CESifo - 2003

We use a random survey of Swedish human resource managers to study the reasons for wage rigidity. Our findings are as follows. First, during the exceptional recession of the 1990s only 1.1 percent of workers received a wage cut. Second, much wage rigidity can be traced to behavioral mechanisms...

Persistent link: https://www.econbiz.de/10005406061

Fair Pay and a Wagebill Argument for Wage Rigidity and Excessive Employment Variability

Thomas, Jonathan - CESifo - 2000

This paper considers a two-period optimal contracting model in which firms make new hires in the second period subject to the constraint that they cannot pay discriminate either against or in favour of the new hires. Under an assumption on the information available to workers, it is shown that...

Persistent link: https://www.econbiz.de/10005406092