The costs of price stability: Downward nominal wage rigidity in Europe

Economica

Volumn 71, Issue 282, 2004, Pages 183-208

  Holden, Steinar ^a  

^a UNIVERSITY OF OSLO   (Norway)

Author keywords

[No Author keywords available]

Indexed keywords

COST; PRICE DYNAMICS; UNEMPLOYMENT; WAGE;

EURASIA; EUROPE;

EID: 2442693233     PISSN: 00130427     EISSN: None     Source Type: Journal    
DOI: 10.1111/j.0013-0427.2004.00365.x     Document Type: Article

References (45)

1. AGELL, J. and BENNMARKER, H. (2002). Wage policy and endogenous wage rigidity: a representative view from the inside. CESifo Working Paper no. 751.
2. AGELL, J. and LUNDBORG, P. (2003). Survey evidence on wage rigidity and unemployment: Sweden in the 1990s. Scandinavian Journal of Economics, 105, 15-30.
3. AKERLOF, G. A., DICKENS, W. T. and PERRY, W. L. (1996). The macroeconomics of low inflation. Brookings Papers on Economic Activity. 1, 1-75.
4. AKERLOF, G. A., DICKENS, W. T. and PERRY, W. L. (2000). Near rational wage and price setting and the long run Phillips curve. Brookings Papers on Economic Activity, 1, 1-60.
5. ALTONJI, J. G. and DEVEREUX, P. J. (1999). The extent and consequences of downward nominal wage rigidity. NBER Working Paper 7236.
6. BALL, L. and MANKIW, N. G. (1994). Asymmetric price adjustment and economic fluctuations. Economic Journal. 247-61.
7. BEISSINGER, T. and KNOPPIK, C. (2000). Downward nominal rigidity in West-German earnings 1975-1995. University of Regensburg Discussion Paper no. 344.
8. BEWLEY, T. F. (1999). Why Wages Do Not Fall During a Recession? Harvard University Press.
9. BINMORE, K., RUBINSTEIN, A. and WOLINSKY, A. (1986). The Nash bargaining solution in economic modelling. RAND Journal of Economics, 17, 176-88.
10. BINMORE, K., SHAKED, A. and SUTTON, J. (1989). An outside option experiment. Quarterly Journal of Economics, 104, 753-70.
11. BLANPAIN, R. (ed.) (1994). International Encyclopaedia for Labour Law and Industrial Relations. Deventer: Kluwer Law and Taxation Publishers.
12. BULLARD, J. and KEATING, J. W. (1995). The long-run relationship between inflation and output in postwar economies. Journal of Monetary Economics, 36, 477-96.
13. CALMFORS, L., BOOTH, A., BURDA, M., CHECCHI, D., NAYLOR, R. and VISSER, J. (2001). The future of collective bargaining in Europe. In T. Boeri, A. Brugiavini and L. Calmfors (eds). The Role of Unions in the Twenty-First Century. Oxford: Oxford University Press.
14. CHRISTOFIDES, L. N. and LEUNG, M. T. (1999). Wage adjustment in contract data: Wage rigidity and menu costs. Mimeo. University of Guelph.
15. CRAMTON, P. and TRACY, J. (1992). Strikes and holdout in wage bargaining. Theory and data. American Economic Review, 82, 100-21.
16. EKBERG, J. (2002). Nominal wage rigidity on the Swedish labor market. Mimeo, Stockholm School of Economics.
17. FEHR, E. and GOETTE, L. (2000). Robustness and real consequences of nominal wage rigidity. Institute for Empirical Research in Economics, University of Zurich, WP 44.
18. FELDSTEIN, M. (1997). The costs and benefits of going from low inflation to price stability. In C. D. Romer and D. H. Romer (eds). Reducing Inflation: Motivation and Strategy, The University of Chicago Press.
19. FORTIN, P. and DUMONT, K. (2000). The shape of the long-run Phillips curve: Evidence from Canadian macrodata, 1956-97. Mimeo, Canadian Institute for Advanced Research.
20. GORDON, R. J. (1996). Comment on Akerlof, Dickens and Perry, The macroeconomics of low inflation. Brookings Papers on Economic Activity, 1, 61-66.
21. GOTTFRIES, N. and WESTERMARK, A. (1998). Nominal wage contracts and the persistent effects of monetary policy. European Economic Review, 42, 207-23.
22. GROSHEN, E. L. and SCHWEITZER, M. E. (2000). The effects of inflation on wage adjustments in firm-level data: Grease or sand? Mimeo. The Federal Reserve Bank of New York.
23. HOLDEN, S. (1989). Wage drift and bargaining. Evidence from Norway. Economica, 56, 419-32.
24. HOLDEN, S. (1994). Wage bargaining and nominal rigidities. European Economic Review, 38 1994, 1021-39.
25. HOLDEN, S. (1997). Wage bargaining, holdout, and inflation. Oxford Economic Papers, 49, 235-55.
26. HOLDEN, S. (1998). Wage drift and the relevance of centralised wage-setting a. Scandinavian Journal of Economics, 100, 711-31.
27. HOLDEN, S. (1999). Renegotiation and the efficiency of investment. Rand Journal of Economics, 30, 106-19.
28. HOLDEN, S. (2001). Does price stability exacerbate labour market rigidities in the EMU? Empirica, 28, 403-18.
29. KEYNES, J. M. (1936). The General Theory of Employment, Interest and Money. MacMillan.
30. KIMURA, T. and UEDA, K. (1997). Downward nominal wage rigidity in Japan: is price stability costly? Working Paper. Bank of Japan.
31. KNOPPIK, C. and BEISSINGER, T. (2003). How rigid are nominal wages? Evidence and implications for Germany. Scandinavian Journal of Economics (forthcoming).
32. LAYARD, R., NICKELL, S. and JACKMAN, R. (1991). Unemployment: Macroeconomic Performance and the Labour Market. Oxford University Press.
33. LEBOW, D. E., SAKS, R. E. and WILSON, B. A. (2000). Downward nominal wage rigidity. Evidence from the employment cost index. WP, Board of Governors of the Federal Reserve System.
34. LUNDBORG, P. and SACKLÈN, H. (2001). Is there a long run unemployment-inflation trade-off in Sweden?. FIEF working paper 173,
35. MACLEOD, W. B. and MALCOMSON, J. M. (1993). Investment, holdup, and the form of market contracts. American Economic Review, 37, 343-54.
36. MALCOMSON, J. M. (1997). Contracts, hold-up, and labor markets. Journal of Economic Literature. 35 (4), 1916-57.
37. MCDONALD, I. (1995). Models of the range of equilibria. In R. Cross (ed). The Natural Rate of Unemployment: Reflections on 25 years of the hypothesis. Cambridge: Cambridge University Press.
38. MOENE, K. O. (1988). Union threats and wage determination. Economic Journal, 98, 471-83.
39. NICKELL, S.J. and QUINTINI, G. (2001). Nominal wage rigidity and the rate of inflation. Mimeo, Centre for Economic Performance, London.
40. RUBINSTEIN, A. (1982). Perfect equilibrium in a bargaining model. Econometrica, 50, 97-109.
41. SHAFIR, E., DIAMOND, P. and TVERSKY, A. (1997). Money illusion, Quarterly Journal of Economics, 112, 341-74.
42. SHAPIRO, C. and STIGLITZ, J. (1984). Equilibrium unemployment as a worker discipline device. American Economic Review, 74, 433-44.
43. TAYLOR, J. (1979). Staggered wage-setting a in a macro model. American Economic Review, 69, 108-13.
44. TOBIN, J. (1972). Inflation and unemployment. American Economic Review, 62, 1-18.
45. VAN OURS, J. C. and VAN DE WIJNGAERT, R. F. (1992). Holdouts and wage negotiations in the Netherlands, mimeo, Free University, Amsterdam.