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Please use this identifier to cite or link to this item:
http://hdl.handle.net/1783.1/1849
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| Title: | Optimal wage indexation |
| Authors: | Cho, Jang-Ok |
| Keywords: | Indexation
Wage contracts
Business cycle |
| Issue Date: | May-2003 |
| Series/Report no.: | Working Papers ; 0302 |
| Abstract: | Indexation clause is introduced in a dynamic general equilibrium model with nominal wage contracts. We first look into the optimal degree of indexation and then its effect on the business cycle. We have found that the optimal degree of indexation is around 50% with little vatiation with the contract length. Indexing the wage contract optimally makes the business cycle in the model economy much closer to the actual one. |
| URI: | http://hdl.handle.net/1783.1/1849 |
| Appears in Collections: | CED Working Papers
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Size | Format |
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| 0302.pdf | | 267Kb | Adobe PDF | View/Open |
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