Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/american-economic-association/sticky-wage-models-and-labor-supply-constraints-gguU82qgF8
References (43)
-
M. Bils (2004)
"Studying Price Markups from Stockout Behavior" (Very Preliminary and Very Incomplete) -
(2011)
Model with Wage Markup Shock: High Wage Markup Sample -
E. Malinvaud (1978)
The theory of unemployment reconsidered -
J. Heathcote, Kjetil Storesletten, G. Violante (2008)
NBER WORKING PAPER SERIES THE MACROECONOMIC IMPLICATIONS OF RISING WAGE INEQUALITY IN THE UNITED STATES -
Jose Trujillo (1985)
Rational responses and rational conjecturesJournal of Economic Theory, 36
-
M. Gertler, A. Trigari, Luca Sala (2008)
An Estimated Monetary DSGE Model with Unemployment and Staggered Nominal Wage BargainingMacroeconomics: Employment
-
P. Herings (2012)
General equilibrium and the new neoclassical synthesisEconomic Theory, 57
-
José-Víctor Ríos-Rull, Raül Santaeulàlia-Llopis (2010)
Redistributive shocks and productivity shocksJournal of Monetary Economics, 57
-
J. Gaĺı, Jordi Crei, U. Fabra, Barcelona Gse, D. López-Salido, Larry Chris
Barcelona Economics Working Paper Series the Return of the Wage Phillips Curve the Return of the Wage Phillips Curve -
R. Hall (2005)
Employment Fluctuations with Equilibrium Wage StickinessThe American Economic Review, 95
-
C. Erceg, D. Henderson, Andrew Levin (1999)
Optimal Monetary Policy with Staggered Wage and Price ContractsMonetary Economics
-
R. Hall, Paul Milgrom (2005)
The Limited Influence of Unemployment on the Wage BargainNBER Working Paper Series
-
J. Drèze (1975)
Existence of an Exchange Equilibrium under Price RigiditiesInternational Economic Review, 16
-
M. Gertler, A. Trigari (2006)
Unemployment Fluctuations with Staggered Nash Wage BargainingJournal of Political Economy, 117
-
Mordecai Kurz (1982)
Unemployment equilibrium in an economy with linked pricesJournal of Economic Theory, 26
-
J. Bénassy (1993)
Nonclearing Markets: Microeconomic Concepts and Macroeconomic ApplicationsJournal of Economic Literature, 31
-
R. Barro (1977)
Long-term contracting, sticky prices, and monetary policyJournal of Monetary Economics, 3
-
P. Herings (1996)
Equilibrium existence results for economies with price rigiditiesEconomic Theory, 7
-
Lawrence Christiano, M. Eichenbaum, Sergio Rebelo (2009)
When Is the Government Spending Multiplier Large?Journal of Political Economy, 119
-
(1986)
Union relative wage effects -
Andrew Levin, A. Onatski, John Williams, Noah (2005)
NBER WORKING PAPER SERIES MONETARY POLICY UNDER UNCERTAINTY IN MICRO-FOUNDED MACROECONOMETRIC MODELS -
Jordi Galí, Frank Smets, R. Wouters (2011)
Unemployment in an Estimated New Keynesian ModelNBER Macroeconomics Annual, 26
-
Mardi Dungey (2009)
Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian FrameworkEconomic Record, 85
-
(2008)
Department of the Federal Reserve Bank of San Francisco. Inventories, Lumpy Trade, and Large Devaluations ∗ -
F. Smets, R. Wouters (2007)
Shocks and Frictions in US Business Cycles: A Bayesian DSGE ApproachMacroeconomics: Aggregative Models eJournal
-
(2005)
International dimensions of optimal monetary policy -
V. Chari, P. Kehoe, Ellen McGrattan (2000)
Can Sticky Price Models Generate Volatile and Persistent Real Exchange Rates?NBER Working Paper Series
-
David Altig, J. Lindé, Lawrence Christiano, M. Eichenbaum (2005)
Firm-Specific Capital, Nominal Rigidities and the Business CycleThe Riksbank Research Paper Series
-
G. Laan (1980)
Equilibrium under Rigid Prices with Compensation for the consumersInternational Economic Review, 21
-
A. Citanna, H. Crès, J. Drèze, P. Herings, Antonio Villanacci (2001)
Continua of Underemployment Equilibria Reflecting Coordination Failures, Also at Walrasian Prices.Total Quality Management & Business Excellence
-
Raj Chetty, Adam Guren, Dayanand Manoli, A. Weber (2011)
Are Micro and Macro Labor Supply Elasticities Consistent? A Review of Evidence on the Intensive and Extensive MarginsThe American Economic Review, 101
-
(2015)
Aggregate demand, idle time, and unemployment -
S. Aruoba, Luigi Bocola, F. Schorfheide (2013)
Assessing DSGE Model NonlinearitiesNBER Working Paper Series
-
Lawrence Christiano, M. Eichenbaum, M. Trabandt (2013)
Unemployment and Business CyclesNBER Working Paper Series
-
Lawrence Christiano, M. Eichenbaum, C. Evans (2001)
Nominal Rigidities and the Dynamic Effects of a Shock to Monetary PolicyJournal of Political Economy, 113
-
(2015)
Occbin: A toolkit to solve models with occasionally binding constraints easily -
(2015)
2015)’s method can handle problems with exogenous binding constraints -
Pierre Dehez, J. Drèze (1984)
On supply-constrained equilibriaJournal of Economic Theory, 33
-
J. Drèze (1997)
Walras--Keynes equilibria coordination and macroeconomicsEuropean Economic Review, 41
-
J. Rotemberg (1982)
Sticky Prices in the United StatesJournal of Political Economy, 90
-
R. Barro, Herschel Grossman (1971)
A General Disequilibrium Model of Income and EmploymentThe American Economic Review, 61
-
Benjamin Born, J. Pfeifer (2016)
THE NEW KEYNESIAN WAGE PHILLIPS CURVE: CALVO VS. ROTEMBERGMacroeconomic Dynamics, 24
-
(2011)
Model with voluntary Ex Post Aggregate Employment St.d of Wage Markup Shock
- Publisher
- American Economic Association
- Copyright
- Copyright © 2020 © American Economic Association
- ISSN
- 1945-7715
- DOI
- 10.1257/mac.20180290
- Publisher site
- See Article on Publisher Site
Abstract
AbstractIn sticky wages models (either à la Calvo or à la Rotemberg), labor is solely determined by the demand side. However, a change of circumstances may make labor demand higher than agents’ willingness to work. We find that workers are required to work against their will between 15 percent and 30 percent of the time (with 5 percent wage markup, less with higher markups and in Rotemberg models). Estimating models with the minimum of the demand and supply of labor instead of the demand-determined quantity yields different and unappealing properties. Hence, special attention should be paid to possible violations of the labor supply constraint. (JEL E12, E24, E32, J22, J23, J31, J51)
Journal
American Economic Journal: Macroeconomics – American Economic Association
Published: Jul 1, 2020