Firms may face financing constraints as a result of rational behaviour of potential lenders due to asymmetric information. In this article, a theoretical model of employment adjustment is developed to derive hypotheses on the short-run impact of financing constraints on employment at the firm...

We analyse the relative intensity and character of price vs. cost and wage vs. employment firm-level adjustment to cost-push shocks in the European System of Central Banks Wage Dynamics Network (WDN) survey data set. The results document several statistically significant and theoretically...

Das ifo Institut führt jeden Monat zu unterschiedlichen Themen Telefoninterviews bei rund 700 Unternehmen in West- und Ostdeutschland durch. Im Mai 1995 und im Februar 1996 befaßte sich der Fragenkatalog mit der Europäischen Währungsunion. Der Anteil der Führungskräfte, die sich von der...

The paper uses a new German employer survey on wage setting to analyze incidence and sources of nominal wage rigidity in services vs. manufacturing. Mainly for fear of excess worker turnover, wage cuts are significantly less frequent in services.

This paper analyses information from survey data collected in the framework of the Eurosystem\'s Wage Dynamics Network (WDN) on patterns of firm-level adjustment to shocks. We document that the relative intensity and the character of price vs. cost and wage vs. employment adjustments in response...

This paper analyses information from survey data collected in the framework of the Eurosystem’s Wage Dynamics Network (WDN) on patterns of firm-level adjustment to shocks. We document that the relative intensity and the character of price vs. cost and wage vs. employment adjustments in...