Prices, Wages, and Employment in the U.S. Economy : A Traditional Model and Tests of Some Alternatives / / Albert Ando, Flint Brayton

• Autore: Ando Albert
• Pubblicazione: Cambridge, Mass, : National Bureau of Economic Research, 1993; Washington : , : Board of Governors of the Federal Reserve System, , 1946
• Descrizione fisica: 1 online resource : illustrations (black and white)
• Soggetto topico: Prices, Business Fluctuations, and Cycles; Monetary Policy, Central Banking, and the Supply of Money and Credit
• Classificazione: E3; E5
• Altri autori: BraytonFlint
• Note generali: December 1993.
• Nota di bibliografia: Includes bibliographical references.
• Sommario/riassunto: In this paper, we outline the cost minimizing behavior of oligopoly firms and the price adjustment process in the labor market which underlie the traditional formulation of aggregate wage-price behavior in the U.S., and show that resulting equations applied to U.S. data remain stable before and after the significant change in the monetary policy rule that had taken place in 1979. This result contradicts the prediction of the Lucas critique applied to this context that, in response to a major change of the monetary policy rule, the Phillips curve and the price setting equation of firms would have undergone significant changes. We test several competing hypotheses for the price level determination, including the possibility that more direct effect of the money supply should be relevant, and show that our formulation dominates alternatives in non- nested tests. Finally, we present evidence that the nature of capital is putty-clay rather than fully malleable, together with a demand function for labor based on this recognition. In the process of these inquiries, we contrast our formulation with that proposed by Layard and Nickell in England.
• Altri titoli varianti: Prices, Wages, and Employment in the U.S. Economy
• Titolo autorizzato: Prices, Wages, and Employment in the U.S. Economy
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Lingua di pubblicazione: Inglese
• Record Nr.: 9910708271303321
• Lo trovi qui: Univ. Federico II
• Serie: Working Paper Series (National Bureau of Economic Research) ; no. w4568.