(Holmstrom and Tirole, 1997), using a comprehensive data set of US small business credit contracts. The data include detailed … finance. More than two thirds of the business credit contracts can be rationalized by one period debt contracts with costly …

dynamic general equilbrium model that includes "Taylor-style" (1980) wage and price contracts can account for a substantial …

-gap variability in an optimizing-agent model with staggered nominal wage and price contracts. This variance tradeoff is absent only in … the special case in which prices are sticky and wages are perfectly flexible. When the model is calibrated to exhibit an …

This paper develops a simple framework for examining human capital accumulation, unemployment, and relative wages in a …

nominal wages. This finding contrasts with results obtained using standard sticky-wage models, which employ Walrasian labor … tolerate large fluctuations in real wages that would otherwise not be tolerated in a standard model with Walrasian labor … markets; as a result, any concern for stabilizing nominal wages does not translate into a concern for stabilizing nominal …

utility calculations. There is a stabilization problem because there are one-period nominal contracts for wages, or prices, or … both and shocks that are unknown at the time when contracts are signed. We evaluate alternative monetary policy rules using … stabilization and optimal stabilization of one variable or a combination of two variables. With wage contracts, outcomes depend …