The chapter investigates the effects of the wage determination mechanism based on bargaining and efficiency wages introduced in Italy in 1993. The analysis deals specifically with the productivity effects of the efficiency wage approach and tests the role of different profit sharing schemes...

The chapter claims that monetary authorities’ conservatism is needed to improve the macroeconomic performance, the more so the higher the degree of product market competition. Contrary to a widespread belief, central bank conservatism and market competition are complements, rather than...

The chapter acknowledges the lack of a theory of social dialogue. In spite of this weakness, the author argues that efficient bargaining/Coase theorem can be a valuable ideal for analyzing social dialogue systems like most EU economies, compared to the perfectly functioning competitive model...

Social pacts have long been a centrepiece of European politics. They are characterized by negotiations among government, employers, workers, and other interest groups over wages and other economic issues. With the growth of globalization and pervasiveness of knowledge, some economists have...