search query: @author Pemberton, J. / total: 9
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| Author: | Pemberton, J. |
| Title: | Expectations and adjustment : An alternative approach with an application to overlapping wage contracts. |
| Journal: | Economica
1988 : AUG, VOL. 55:219, p. 379-391 |
| Index terms: | PAY CONTRACTS |
| Language: | eng |
| Abstract: | A problem is considered which posed for rational expectations when individual agents' choices depend on their expectations of other agents' expectations. An approach suggested involves asymmetric adjustment in response to exogenous shocks. This is applied to the literature on overlapping wage contracts and produces a pattern of adjustment in which wages fall more slowly in response to deflationary shocks than they rise in response to expansionary shocks. |
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