Piekkola, Hannu; Haaparanta, Pertti - In: Applied Economics Quarterly (formerly: Konjunkturpolitik) 52 (2006) 1, pp. 55-73
In this study on labour input and wage formation in Finland the importance of liquidity constraints measured by the ratio of interest payments to cash flow is examined. Financial solvency problems are shown to lead to a reduction in labour input, potentially explaining for the most part the 16%...
