Bowdler, Christopher; Nunziata, Luca - In: Journal of Macroeconomics 32 (2010) 3, pp. 816-826
Using OECD panel data for 1961-2000 we provide evidence that the output cost associated with disinflation (the sacrifice ratio) decreases with coordination between wage-setters in the labor market. The relationship holds for alternative measures of labor market coordination and after controlling...