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Munich Personal RePEc Archive

The Cost of Social Pacts

Acocella, Nicola and Di Bartolomeo, Giovanni (2007): The Cost of Social Pacts.

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Abstract

Social pacts, while improving macroeconomic performance, usually impose costs on unions. To facilitate the formation of such pacts, various substitutes can operate, such as the payment of transfers or, to some extent, the conservativeness of the government, union’s inflation aversion or political partisanship.

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