Long-term bond yields contain a risk-premium, an important part of which is compensation for inflation risks. The substantial increase in the Fed funds rate in the mid-2000s did not raise long-term US Treasury yields due to the reduction in the term premium (so-called Greenspan conundrum) which...

This paper considers a two-period optimal contracting model in which firms make new hires in the second period subject to the constraint that they cannot pay discriminate either against or in favour of the new hires. Under an assumption on the information available to workers, it is shown that...

Die vorliegende Disseration besteht aus drei Aufsätzen zu Lohnrigiditäten in bestehenden Beschäftigungsverhältnissen. Wenn Arbeitsverträge einseitig aufgelöst werden können, sind gelegentlich Lohnanpassungen notwendig, damit eine Weiterbeschäftigung im Interesse von Arbeitergeber und...

We analyse the implications of habit formation relating to wages in a multi-period efficiency-wage model. If employees have such preferences, their existence provides firms with incentives to raise wages and reduce employment over time. Greater intensity does not necessarily have the same...