Driscoll, John C.; Holden, Steinar - In: Journal of the European Economic Association 2 (2004) 2-3, pp. 240-251
We argue that peoples' concern for fairness may explain an unsolved puzzle in macroeconomics: the persistence of inflation. We extend a 1990 wage-contracting model of Bhaskar in which workers' disutility from being paid less than other workers exceeds their utility from being paid more. This...
