Comepting Wage Claims, Cost Inflation, and Capacity Utilization
1982 (English)Report (Other academic)
This paper develops a theory of competing wage claims and cost inflation, and attempts to integrate this theory into the core of modern macroeconomic analysis. Specifically, the paper proposes an explanation for wage rigidity and wage interdependence based on an application of duopoly theory to labor union behavior into a macroeconomic general equilibrium model with goods, money, and bonds as well as two kinds of labor. Special emphasis is placed on the interplay between demand and cost factors in the inflation process and on the implications of wage competition among labor unions for the relationship between inflation and unemployment in the short and long run.
Place, publisher, year, edition, pages
Stockholm: IIES , 1982. , 50 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 224
IdentifiersURN: urn:nbn:se:su:diva-41453OAI: oai:DiVA.org:su-41453DiVA: diva2:330342