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Wage Rigidities in Western Germany: Microeconometric Evidence from the 1990s

Puhani, Patrick A - C.E.P.R. Discussion Papers - 2001

This Paper investigates whether and in what sense the west German wage structure has been ‘rigid’ in the 1990s. To test the hypothesis that a rigid wage structure has been responsible for rising low-skilled unemployment, I propose a methodology that makes less restrictive identifying...

Persistent link: https://www.econbiz.de/10005666858

On the Identification of Relative Wage Rigidity Dynamics: A Proposal for a Methodology on Cross-Section Data and Empirical Evidence for Poland in Transition

Puhani, Patrick A - C.E.P.R. Discussion Papers - 2001

. We find that the Polish wage structure generated hardly any rigidities between 1994 and 1998 nor did it reduce possibly … existing rigidities during that period. …

Persistent link: https://www.econbiz.de/10005666923

The Rise and Persistence of Rigidities

Saint-Paul, Gilles - C.E.P.R. Discussion Papers - 1997

protection and that this political support is greater when employment protection is more harmful for employment. Also, rigidities …

Persistent link: https://www.econbiz.de/10005791239

Optimal Fiscal and Monetary Policy: Equivalence Results

Correia, Isabel; Nicolini, Juan Pablo; Teles, Pedro - C.E.P.R. Discussion Papers - 2003

In this Paper, we analyse the implications of price setting restrictions for the conduct of cyclical fiscal and monetary policy. We consider an environment with monopolistic competitive firms, a shopping time technology, prices set one period in advance, and government expenditures that must be...

Persistent link: https://www.econbiz.de/10005504488

Modeling Exchange Rate Passthrough After Large Devaluations

Burstein, Ariel Tomas; Eichenbaum, Martin; Rebelo, Sérgio - C.E.P.R. Discussion Papers - 2005

Large devaluations are generally associated with large declines in real exchange rates. We develop a model which embodies two complementary forces that account for the large declines in the real exchange rate that occur in the aftermath of large devaluations. The first force is sticky...

Persistent link: https://www.econbiz.de/10005504694

Labour Markets and Monetary Policy: A New Keynesian Model with Unemployment

Blanchard, Olivier J; Galí, Jordi - C.E.P.R. Discussion Papers - 2008

We construct a utility-based model of fluctuations, with nominal rigidities and unemployment, and draw its implications … nominal rigidities aside. We show that, under a standard utility specification, productivity shocks have no effect on … for fluctuations in unemployment. We show the role of labour market frictions and real wage rigidities in determining the …

Persistent link: https://www.econbiz.de/10005504699

Does Money Illusion Matter? An Experimental Approach

Fehr, Ernst; Tyran, Jean-Robert - C.E.P.R. Discussion Papers - 2000

Money illusion means that people behave differently when the same objective situation is represented in nominal terms rather than in real terms. This paper shows that seemingly innocuous differences in payoff representation cause pronounced differences in nominal price inertia indicating the...

Persistent link: https://www.econbiz.de/10005504787

Micro Evidence on the Adjustment of Sticky-Price Goods: It's How Often, Not How Much

Götte, Lorenz; Minsch, Rudolf; Tyran, Jean-Robert - C.E.P.R. Discussion Papers - 2005

We use a unique panel data set to analyse price setting in restaurants in Switzerland 1977-93, for items known to have sticky prices. The macroeconomic environment during this time period allows us to examine how firms adjust prices at low (0%) and fairly high (7%) inflation. Our results...

Persistent link: https://www.econbiz.de/10005498134

Fiscal Stimulus with spending reversals

Corsetti, Giancarlo; Meier, André; Müller, Gernot - C.E.P.R. Discussion Papers - 2009

The impact of fiscal stimulus depends not only on short-term tax and spending policies, but also on expectations about offsetting measures in the future. This paper analyzes the effects of an increase in government spending under a plausible debt-stabilizing policy that systematically reduces...

Persistent link: https://www.econbiz.de/10004976796

Monetary Shocks with Observation and Menu Costs

Alvarez, Fernando; Lippi, Francesco; Paciello, Luigi - C.E.P.R. Discussion Papers - 2013

We compute the impulse response of output to an aggregate monetary shock in a general equilibrium when firms set prices subject to a costly observation of the state and a menu cost. We study how the aggregate effects of a monetary shock depend on the relative size of these costs. We find that...

Persistent link: https://www.econbiz.de/10011083721