Macroeconomic dynamics with rigid contracts - HAL-SHS - Sciences de l'Homme et de la Société Accéder directement au contenu
Article Dans Une Revue American Law and Economics Review Année : 2023

Macroeconomic dynamics with rigid contracts

Résumé

We adapt the wage contracting structure in Chari (1983) to a dynamic, balanced-growth setting with re-contracting à la Calvo (1983). The resulting wage-rigidity framework delivers a model very similar to that in Jaimovich and Rebelo (2009), with their habit parameter replaced by our probability of wage-contract resetting. That is, if wage contracts can be reset very frequently, labor supply behaves in accordance with King, Plosser, and Rebelo (1988) preferences, whereas if they are sticky for a long time, we obtain the setting in Greenwood, Hercowitz, and Huffman (1988), thus allowing significant responses of hours to wage changes.
Fichier non déposé

Dates et versions

halshs-03956469 , version 1 (25-01-2023)

Identifiants

Citer

Tobias Broer, Karl Harmenberg, Per Krusell, Erik Oberg. Macroeconomic dynamics with rigid contracts. American Law and Economics Review, 2023, 5 (1), pp.55-72. ⟨10.1257/aeri.20210672⟩. ⟨halshs-03956469⟩
32 Consultations
0 Téléchargements

Altmetric

Partager

Gmail Mastodon Facebook X LinkedIn More