Optimal contracts and the role of the government in wage bargaining

This paper introduces a contract between the government and trade unions in a model of strategic wage bargaining à la Lippi (2003). It shows that an optimal contract can be implemented through an appropriately defined inflation target.

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Year of publication:	2012
Authors:	Cavallari, Lilia
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 115.2012, 2, p. 160-163
Publisher:	Elsevier
Subject:	Fiscal policy commitment \| Optimal wage contract \| Wage bargaining \| Social pact \| Inflation target

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Type of publication:	Article
Classification:	E64 - Incomes Policy; Price Policy ; J51 - Trade Unions: Objectives Structure, and Effects
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011041818