, prices, and factor supplies. The model is based on the neoclassical theory of production, and is implemented by assuming that … has directly estimated the joint impact of these different causes. In this paper, we view wages as arising out of a … competitive general equilibrium where goods prices, technology and factor supplies jointly determine outputs and factor prices. We …

; and, when prices and wages are not reoptimized, they can be partially adjusted to previous-period aggregate inflation. The …This paper analyzes the dynamics of prices and wages using a limited information approach to estimation. I estimate a … two-equation model for the determination of prices and wages derived from an optimization-based dynamic model in which …