Breitfelder, Ariane; Broll, Udo; Wong, Kit Pong - In: Finnish Economic Papers 21 (2008) 2, pp. 118-123
This paper places the competitive firm under output price uncertainty in a standard efficiency wage model, wherein the work effort of labor depends on the wage rate set by the firm. Irrespective of the availability of a commodity futures market, we show that the Solow condition holds in that the...