Campbell, Carl M. (2009): An efficiency wage - imperfect information model of the aggregate supply curve.
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This study derives a reduced-form equation for the aggregate supply curve from a model in which firms pay efficiency wages and workers have imperfect information about average wages at other firms. If specific assumptions are made about workers’ expectations of average wages and about aggregate demand, the model predicts how the aggregate demand and supply curves shift and how output and prices adjust in response to demand shocks and supply shocks. The model also provides an alternative explanation for Lucas’ (1973) finding that the AS curve is steeper in countries with greater inflation variability.
|Item Type:||MPRA Paper|
|Original Title:||An efficiency wage - imperfect information model of the aggregate supply curve|
|Keywords:||Aggregate supply curve; efficiency wages; imperfect information|
|Subjects:||E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations; Cycles
J - Labor and Demographic Economics > J4 - Particular Labor Markets > J41 - Labor Contracts
E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E10 - General
|Depositing User:||Carl M. Campbell|
|Date Deposited:||21. May 2009 13:38|
|Last Modified:||13. Feb 2013 02:24|
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