Karanassou, Marika (contributor); … - 2007
induces unemployment to depend on its own lags.
In its simplest form, wage staggering assumes that nominal wages are fixed for … contract wages, as well as current and future excess demand:
W
t
= αW
t−1
+(1−α)E
t
W
t+1
+ γ [αx
t
+(1−α)E
t
x
t+1
], (1 … strongly wages are influenced by demand. Note that the only
restriction that needs to be imposed on the backward- and forward …