Using annual US data for gross domestic product originating by sector between 1947 and 1997 it is shown that a negative long-run relationship between inflation and the markup is present across the sectors as well as in the aggregate. A preliminary explanation based on indutry structure is...

Recent literature reaches contrasting conclusions on the ability of price/wage staggering models to generate output persistence. The authors derive fairly general results from a stylised log-linear model which encompasses most of the microfound model of price/wage staggering.

The authors study the employment and distributional effects of regulating (reducing) working time in a general equilibrium model with search-matching frictions.

Recent quantitative dynamic general equilibrium models have cast serious doubts on the explanatory power of staggered wage/price setting in accounting for both output and inflation persistence. The authors enlarge a dynamic general equilibrium model with staggered wages by incorporating...

In this paper, we analyze several statistical assumptions used in empirical models on public -private sector wage structures. Based on data for Germany, which contain a large range of background variables usually not available in other studies, we investigate the sensitivity of the results to...

Wages may be observed to increase with seniority because of firm-specific human capital accumulation or because of self-selection of better workers in longer jobs. In both these cases the upward sloping wage profile in cross sectional regressions would reflect higher productivity of more senior...

This paper presents an innovation driven endogenous growth model, where firms and unions bargain over wages. We find that the degree of centralization of the bargaining structure plays a crucial rule for economic performance. Central bargaining, which incorporates the leapfrogging externality...

An I(2) analysis of inflation and the markup is undertaken for the G7 economies and Australia. We find that the levels of prices and costs are best described as I(2) processes and that except for Japan a linear combination of the log levels or prices and costs cointegrate to the markup that is...

An important component of the long-run cost of a war is the loss of human capital suffered by children in schooling age who receive less education because of the war. This paper shows that in the European countries involved in WWII, children who were ten years old during the conflict were...

This paper analyses a signalling model of managers' promotion from divisions to the CEO position, in both cases of a monopoly and a duopoly. Explicit and implicit incentives in the presence of asymmetric information are shown to induce managers to increase effort in order to signal high ability...