Sticky wages in a world of ideas.

This paper examines the implications of idea production and knowledge capital for monetary business cycles. We construct a sticky‐wage model where workers produce goods based on firm‐specific knowledge capital and researchers develop new ideas aided by economywide knowledge. As a quantitatively smal...

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Publicado en:Economic Inquiry Vol. 60; no. 4; pp. 1757 - 1782
Autores principales: Huang, Kevin X. D., Katayama, Munechika, Shintani, Mototsugu, Tsuruga, Takayuki
Formato: Artículo
Publicado: Wiley-Blackwell Oct2022
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Oct2022
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        atl: Sticky wages in a world of ideas.
      aug:
        au:
          Huang, Kevin X. D.
          Katayama, Munechika
          Shintani, Mototsugu
          Tsuruga, Takayuki
        affil:
          Department of Economics, Vanderbilt University, Nashville Tennessee,, USA
          Faculty of Political Science and Economics, Waseda University, Tokyo, Japan
          Faculty of Economics, The University of Tokyo, Tokyo, Japan
          Institute of Social and Economic Research, Osaka University, Osaka, Japan
      su:
        Wages
        Business cycles
        Pay for performance
        Monetary incentives
      sug:
        subj:
          Wages
          Business cycles
          Pay for performance
          Monetary incentives
      keyword:
        ideas
        knowledge capital
        monetary neutrality
        nonrivalry
        sticky wages
        ideas
        knowledge capital
        monetary neutrality
        nonrivalry
        sticky wages
      ab: This paper examines the implications of idea production and knowledge capital for monetary business cycles. We construct a sticky‐wage model where workers produce goods based on firm‐specific knowledge capital and researchers develop new ideas aided by economywide knowledge. As a quantitatively small group in the economy, researchers are inconsequential for the real effects of monetary shocks when the returns to research are low. However, when the returns to research are high, the result can be overturned. Monetary shocks can have significant real effects, even if wages are perfectly flexible for workers, who are quantitatively dominant in the economy.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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