Staggered Wage Setting in a Macro Model.
This article argues that the inflation dynamics typically associated with the expectations-augmented Phillips curve are significantly influenced by the interaction of staggered contracts as well as by expectations effects. A property of wage and price contracts which has not typically been emphasize...
| Publicado en: | American Economic Review Vol. 69; no. 2; pp. 108 - 114 |
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| Autor principal: | |
| Formato: | Artículo |
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American Economic Association
May79
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=4496866&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 4496866 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00028282 AER jtl: American Economic Review issn: 00028282 maglogo: N pubinfo: dt: May79 vid: 69 iid: 2 pid: 22 pub: American Economic Association artinfo: ui: 4496866 ppf: 108 ppct: 6 formats: tig: atl: Staggered Wage Setting in a Macro Model. aug: au: Taylor, John B. affil: Columbia University su: Price inflation Phillips curve Demand function Rational expectations (Economic theory) Contracts Macroeconomics sug: subj: Price inflation Phillips curve Demand function Rational expectations (Economic theory) Contracts Macroeconomics ab: This article argues that the inflation dynamics typically associated with the expectations-augmented Phillips curve are significantly influenced by the interaction of staggered contracts as well as by expectations effects. A property of wage and price contracts which has not typically been emphasized in micro-economic analyses, but which is important from the viewpoint of macroeconomics is that contract decisions are staggered, all contract decisions in the economy are not made at the same point in time. While some months are more popular than others for adjusting wage contracts, these adjustment decisions are generally staggered throughout the year. The wage and output dynamics generated by this model share a number of features with the actual behavior of these series and this lends some support to the idea that contract formation as well as expectations is an important part of wage and price dynamics. While these ideas are implicit in much accelerationist research, the aim here has been to make them explicit in order that alternative hypotheses concerning the inflation process can be stated more clearly. The overlapping contract model described in the paper is closely related to a number of other models. While the micro foundations of such models need to be developed more rigorously, they seem capable of improving our understanding of the dynamics of the inflationary process within a reasonable well-specified rational setting. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 1979 holdings: @attributes: islocal: N |
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