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This paper documents the short run and long run behavior of the search and matching model with staggered Nash wage bargaining. It turns out that there is a strong tradeoff inherent in assuming that previously bargained sticky wages apply to new hires. If sticky wages apply to new hires, then the...
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risk, an equilibrium may exist even if bids are costless and the intended amount is pre-announced. In fact, rationing may … typically inefficient. Empirical proxies of exposure risk are significant in both Euro and Sterling operations. Our findings …
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