Keynesian involuntary unemployment and sticky nominal wages.
A model in which sticky nominal wages and Keynesian involuntary unemployment are brought about as a consequence of the intertemporal optimization decisions of profit maximizing monopsonistic firms and wholly rational and informed personnel in an uncertain environment is presented. In the model, unc...
| Publicado en: | Economic Journal Vol. 106; pp. 1564 - 1586 |
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| Autores principales: | , |
| Formato: | Artículo |
| Publicado: |
Wiley-Blackwell
November 1996
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | A model in which sticky nominal wages and Keynesian involuntary unemployment are brought about as a consequence of the intertemporal optimization decisions of profit maximizing monopsonistic firms and wholly rational and informed personnel in an uncertain environment is presented. In the model, uncertainty related to the business cycle and its effect on product price yields disequilibrium wages and identifies the labor demand function in contractions and the supply of labor in expansions. Empirical evidence is demonstrated to give strong support to the theoretical prediction of a negative relationship between wages and unemployment during contractions and a positive relationship during expansions. |
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