Bubbles, wage rigidity, and persistent slumps

C-Tier
Journal: Economics Letters
Year: 2017
Volume: 151
Issue: C
Pages: 66-70

Authors (2)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We embed downward wage rigidity into a rational bubble model. We analytically characterize how the collapse of bubbles can interact with wage rigidity to generate deep and protracted recessions with involuntary unemployment, such as those in Japan or Spain.

Technical Details

RePEc Handle
repec:eee:ecolet:v:151:y:2017:i:c:p:66-70
Journal Field
General
Author Count
2
Added to Database
2026-01-29