Why Does the Cyclical Behavior of Real Wages Change Over Time?
FRB of Kansas City Working Paper No. 02-09
38 Pages Posted: 16 Apr 2003
Date Written: December 2002
Abstract
This paper seeks to understand the evolution of the cyclical behavior of U.S. real wage rates from the interwar period to the post World War II period using a dynamic general equilibrium model that emphasizes demand-driven business cycle fluctuations. In the model, changes in the cyclical behavior of real wages arise endogenously from the interactions between nominal wage and price rigidities and an evolving input-output structure.
Keywords: Real Wage Cyclicality, Staggered Price and Wage Setting, Input-Output Structure
JEL Classification: E24, E32, E52
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Business Cycles in International Historical Perspective
By Susanto Basu and Alan M. Taylor
-
UK Monetary Regimes and Macroeconomic Stylised Facts
By Luca Benati
-
Band-Pass Filtering, Cointegration, and Business Cycle Analysis
By Luca Benati
-
Harvests and Business Cycles in Nineteenth-Century America
By Joseph H. Davis, Christopher Hanes, ...
-
Investigating Time-Variation in the Marginal Predictive Power of the Yield Spread
By Luca Benati and Charles Goodhart
-
Statistical Modeling of Duration Dependence in Business Cycles Using a Modulated Power Law Process
By Haigang Zhou and Steven E. Rigdon
-
By Saibu M. O.
-
On Exchange Rate Regimes, Exchange Rate Fluctuations, and Fundamentals