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thereby may have contributed to the stagnant wage growth and low unemployment observed in the 1990s. …
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To what extent can the persistence of very high unemployment rates in most of the European countries be attributed to … point between unemployment and real interest rate. Within this model and devising a new Bayesian approach, the weak and … exogenous, providing support to the hypothesis of long run causation of interest rates on unemployment after 1974. Short term …
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We extend the benchmark RBC model amending the technology for efficiency wage considerations. The disutility of effort depends on current, alternative and past wages. Past wages are treated as the worker's past wages (personal norm case) or as the past wages of the society (social norm case)....
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We present an efficiency wage model in which workers' effort depends on the level and on the growth rate of their wage relative to an alternative wage. Using data for four countries (US, UK, FR, GY), the implications of the model are examined and are found to be in accordance with the...
Persistent link: https://www.econbiz.de/10004985060
Past experiences and social forces have been incorporated into tastes in order to analyze various microeconomic issues. We use these extended preferences to model the making of standard-of-living aspirations and study their effect on macroeconomic variables. We concentrate first on consumption...
Persistent link: https://www.econbiz.de/10004985270
We present a dynamic non-linear model for an efficient contracting between a firm facing adjustment costs on labour and a union having preferences which are subject to habit formation. The model’s first order necessary conditions are estimated for the French, the Dutch and the Belgian labour...
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