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...

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Detalles Bibliográficos
Publicado en:Economic Journal Vol. 106; pp. 1564 - 1586
Autores principales: Holmes, James M., Hutton, Patricia A.
Formato: Artículo
Publicado: Wiley-Blackwell November 1996
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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          Holmes, James M.
          Hutton, Patricia A.
      su:
        Keynesian economics
        Mathematical models of unemployment
        Mathematical models of economic competition
        Monopsonies
        History
        Prices
        United States
      sug:
        subj:
          United States
          Keynesian economics
          Mathematical models of unemployment
          Mathematical models of economic competition
          Monopsonies
          History
          Prices
      ab: 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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      doctype: Article
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    language: English
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