haku: @author Bar-Ilan, A. / yhteensä: 3
viite: 2 / 3
| Tekijä: | Bar-Ilan, A. Zanello, A. |
| Otsikko: | On the absence of positive wage indexation |
| Lehti: | Economica
1996 : NOV, VOL. 63:252, p. 687-699 |
| Asiasana: | ECONOMICS PAY INDEXATION |
| Kieli: | eng |
| Tiivistelmä: | This paper rationalizes the absence of positive wage indexation in labour contracts - that is, of indexing provisions that link wage increases to inflation. The authors investigate the equilibrium of a policy game in a stochastic economy in which wage-setters and a policy maker interact strategically in order to determine the preferred degree of wage indexation and an optimal stabilization rule, respectively. The authors' conclusion is that nominal wage rigidity and counter-inflationary economic policy represent the best courses of action when price stability is valued and negative responses of contractual wages to price shocks are ruled out. |
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