This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Why Does the Cyclical Behavior of Real Wages Change over Time? Author info | Abstract | Publisher info | Download info | Related research | Statistics Kevin X. D. Huang
Zheng Liu
Louis Phaneuf
Additional information is available for the following
registered author(s):
The cyclical behavior of real wages has evolved from mildly countercyclical during the interwar period to modestly procyclical in the postwar era. This paper presents a general equilibrium business-cycle model that helps explain the evolution. In the model, changes in the real wage cyclicality arise from interactions between nominal wage and price rigidities and an evolving input-output structure.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Article provided by American Economic Association in its journal American Economic Review .
Volume (Year): 94 (2004)
Issue (Month): 4 (September)
Pages: 836-856
Download reference. The following formats are available: HTML ,
plain text ,
BibTeX ,
RIS (EndNote),
ReDIF
Handle: RePEc:aea:aecrev:v:94:y:2004:i:4:p:836-856Contact details of provider: Email: Web page: http://www.aeaweb.org/aer/ More information through EDIRC
Order Information: Web: http://www.aeaweb.org/subscribe.html
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Keywords: Other versions of this item:
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: James H. Stock & Mark W. Watson, 1998.
"Business Cycle Fluctuations in U.S. Macroeconomic Time Series ,"
NBER Working Papers
6528, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Stock, James H. & Watson, Mark W., 1999.
"Business cycle fluctuations in us macroeconomic time series ,"
Handbook of Macroeconomics ,
in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 1, pages 3-64
Elsevier.
[Downloadable!] (restricted) Christina D. Romer, 1999.
"Changes in Business Cycles: Evidence and Explanations ,"
NBER Working Papers
6948, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Blanchard, Olivier Jean & Kiyotaki, Nobuhiro, 1987.
"Monopolistic Competition and the Effects of Aggregate Demand ,"
American Economic Review ,
American Economic Association, vol. 77(4), pages 647-66, September.
[Downloadable!] (restricted)
Susanto Basu & John G. Fernald, 1997.
"Aggregate productivity and aggregate technology ,"
International Finance Discussion Papers
593, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!]
Other versions: Charles A. Fleischman, 1999.
"The causes of business cycles and the cyclicality of real wages ,"
Finance and Economics Discussion Series
1999-53, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!]
Susanto Basu & Alan M. Taylor, 1999.
"Business Cycles in International Historical Perspective ,"
Journal of Economic Perspectives ,
American Economic Association, vol. 13(2), pages 45-68, Spring.
[Downloadable!] (restricted)
Other versions: V. V. Chari & Patrick J. Kehoe & Ellen R. McGrattan, 2000.
"Sticky Price Models of the Business Cycle: Can the Contract Multiplier Solve the Persistence Problem? ,"
Econometrica ,
Econometric Society, vol. 68(5), pages 1151-1180, September.
Other versions: Kevin X.D. Huang & Zheng Liu, 2003.
"Production, Trade, and International Comovement ,"
Emory Economics
0308, Department of Economics, Emory University (Atlanta).
[Downloadable!]
Blanchard, Olivier J, 1986.
"The Wage Price Spiral ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 101(3), pages 543-65, August.
[Downloadable!] (restricted)
Other versions: Julio J. Rotemberg & Michael Woodford, 1993.
"Dynamic General Equilibrium Models with Imperfectly Competitive Product Markets ,"
NBER Working Papers
4502, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Ben S. Bernanke & Kevin Carey, 1996.
"Nominal Wage Stickiness and Aggregate Supply in the Great Depression ,"
NBER Working Papers
5439, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Bergin, Paul R. & Feenstra, Robert C., 2001.
"Pricing-to-market, staggered contracts, and real exchange rate persistence ,"
Journal of International Economics ,
Elsevier, vol. 54(2), pages 333-359, August.
[Downloadable!] (restricted)
Other versions:
Paul R. Bergin & Robert C. Feenstra, .
"Pricing To Market, Staggered Contracts, And Real Exchange Rate Persistence ,"
Department of Economics
99-01, California Davis - Department of Economics.
[Downloadable!] Paul R. Bergin & Robert C. Feenstra, 1999.
"Pricing to Market, Staggered Contracts, and Real Exchange Rate Persistence ,"
NBER Working Papers
7026, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Taylor, John B., 1999.
"Staggered price and wage setting in macroeconomics ,"
Handbook of Macroeconomics ,
in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 15, pages 1009-1050
Elsevier.
[Downloadable!] (restricted)
Other versions: Basu, Susanto, 1995.
"Intermediate Goods and Business Cycles: Implications for Productivity and Welfare ,"
American Economic Review ,
American Economic Association, vol. 85(3), pages 512-31, June.
[Downloadable!] (restricted)
Other versions: Finn E. Kydland, 1993.
"Business cycles and aggregate labor-market fluctuations ,"
Working Paper
9312, Federal Reserve Bank of Cleveland.
[Downloadable!]
Lucas, Robert E., 1988.
"Money demand in the United States: A quantitative review ,"
Carnegie-Rochester Conference Series on Public Policy ,
Elsevier, vol. 29, pages 137-167.
[Downloadable!] (restricted)
Lawrence J. Christiano & Martin Eichenbaum & Charles L. Evans, 1996.
"Sticky Price and Limited Participation Models of Money: A Comparison ,"
NBER Working Papers
5804, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Lawrence J. Christiano & Martin Eichenbaum & Charles L. Evans, 1996.
"Sticky price and limited participation models of money: a comparison ,"
Working Paper Series, Macroeconomic Issues
96-28, Federal Reserve Bank of Chicago.
Lawrence J. Christiano & Martin Eichenbaum & Charles L. Evans, 1996.
"Sticky price and limited participation models of money: a comparison ,"
Staff Report
227, Federal Reserve Bank of Minneapolis.
[Downloadable!] Christiano, Lawrence J. & Eichenbaum, Martin & Evans, Charles L., 1997.
"Sticky price and limited participation models of money: A comparison ,"
European Economic Review ,
Elsevier, vol. 41(6), pages 1201-1249, June.
[Downloadable!] (restricted) Griffin, Peter, 1992.
"The Impact of Affirmative Action on Labor Demand: A Test of Some Implications of the Le Chatelier Principle ,"
The Review of Economics and Statistics ,
MIT Press, vol. 74(2), pages 251-60, May.
[Downloadable!] (restricted)
J. Bradford De Long & Lawrence H. Summers, 1986.
"The Changing Cyclical Variability of Economic Activity in the United States ,"
NBER Working Papers
1450, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Finn E. Kydland & Edward C. Prescott, 1990.
"Business cycles: real facts and a monetary myth ,"
Quarterly Review ,
Federal Reserve Bank of Minneapolis, issue Spr, pages 3-18.
[Downloadable!]
Hamilton, James D., 1987.
"Monetary factors in the great depression ,"
Journal of Monetary Economics ,
Elsevier, vol. 19(2), pages 145-169, March.
[Downloadable!] (restricted)
Jordi Gali, 1999.
"Technology, Employment, and the Business Cycle: Do Technology Shocks Explain Aggregate Fluctuations? ,"
American Economic Review ,
American Economic Association, vol. 89(1), pages 249-271, March.
[Downloadable!] (restricted)
Other versions:
Jordi Gali, 1996.
"Technology, Employment, and the Business Cycle: Do Technology Shocks Explain Aggregate Fluctuations ,"
NBER Working Papers
5721, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Gali, J., 1996.
"Technology, Employment, and the Business Cycle: Do Technology Shocks Explain Aggregate Fluctuations? ,"
Working Papers
96-28, C.V. Starr Center for Applied Economics, New York University.
[Downloadable!] Galí, Jordi, 1996.
"Technology, Employment, and the Business Cycle: Do Technology Shocks Explain Aggregate Fluctuations? ,"
CEPR Discussion Papers
1499, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Bils, Mark J, 1985.
"Real Wages over the Business Cycle: Evidence from Panel Data ,"
Journal of Political Economy ,
University of Chicago Press, vol. 93(4), pages 666-89, August.
[Downloadable!] (restricted)
Michael D. Bordo & Christopher J. Erceg & Charles L. Evans, 2000.
"Money, Sticky Wages, and the Great Depression ,"
American Economic Review ,
American Economic Association, vol. 90(5), pages 1447-1463, December.
[Downloadable!] (restricted)
Other versions:
Michael D. Bordo & Christopher J. Erceg & Charles L. Evans, 1997.
"Money, sticky wages, and the great depression ,"
International Finance Discussion Papers
591, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!] Michael D. Bordo & Christopher J. Erceg & Charles N. Evans, 1997.
"Money, Sticky Wages, and the Great Depression ,"
NBER Working Papers
6071, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Michael D. Bordo & Christopher J. Erceg & Charles L. Evans, 1997.
"Money, sticky wages, and the Great Depression ,"
Working Paper Series, Macroeconomic Issues
WP-97-2, Federal Reserve Bank of Chicago.
[Downloadable!] Rotemberg, Julio J, 1982.
"Monopolistic Price Adjustment and Aggregate Output ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 49(4), pages 517-31, October.
[Downloadable!] (restricted)
Steve Ambler & Alain Guay & Louis Phaneuf, 1999.
"Wage Contracts and Labor Adjustment Costs as Endogenous Propagation Mechanisms ,"
Cahiers de recherche CREFE / CREFE Working Papers
69, CREFE, Université du Québec à Montréal.
[Downloadable!]
Andersen, Torben M., 1998.
"Persistency in sticky price models ,"
European Economic Review ,
Elsevier, vol. 42(3-5), pages 593-603, May.
[Downloadable!] (restricted)
Timothy Cogley & James M. Nason, 1993.
"Output dynamics in real business cycle models ,"
Working Papers in Applied Economic Theory
93-10, Federal Reserve Bank of San Francisco.
Other versions:
Cogley, T. & Nason, J.M., 1994.
"Output Dynamics in Real Business Cycle Models ,"
UBC Departmental Archives
94-28, UBC Department of Economics.
Cogley, Timothy & Nason, James M, 1995.
"Output Dynamics in Real-Business-Cycle Models ,"
American Economic Review ,
American Economic Association, vol. 85(3), pages 492-511, June.
[Downloadable!] (restricted) Blanchard, Olivier Jean & Quah, Danny, 1989.
"The Dynamic Effects of Aggregate Demand and Supply Disturbances ,"
American Economic Review ,
American Economic Association, vol. 79(4), pages 655-73, September.
[Downloadable!] (restricted)
Other versions: Todd E. Clark, 1999.
"The Responses Of Prices At Different Stages Of Production To Monetary Policy Shocks ,"
The Review of Economics and Statistics ,
MIT Press, vol. 81(3), pages 420-433, August.
[Downloadable!] (restricted)
Other versions: Ball, Laurence & Romer, David, 1990.
"Real Rigidities and the Non-neutrality of Money ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 57(2), pages 183-203, April.
[Downloadable!] (restricted)
Susanto Basu & Miles S. Kimball, 1997.
"Cyclical Productivity with Unobserved Input Variation ,"
NBER Working Papers
5915, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Christina D. Romer and David H. Romer., 1989.
"Does Monetary Policy Matter? A New Test in the Spirit of Friedman and Schwartz ,"
Economics Working Papers
89-107, University of California at Berkeley.
Barro, Robert J & Grossman, Herschel I, 1971.
"A General Disequilibrium Model of Income and Employment ,"
American Economic Review ,
American Economic Association, vol. 61(1), pages 82-93, March.
[Downloadable!] (restricted)
Paul Gomme & Jeremy Greenwood, 1992.
"On the cyclical allocation of risk ,"
Discussion Paper / Institute for Empirical Macroeconomics
71, Federal Reserve Bank of Minneapolis.
[Downloadable!]
Other versions:
Gomme, P. & Greenwood, J., 1992.
"On the Cyclical Allocation of Risk ,"
UWO Department of Economics Working Papers
9205, University of Western Ontario, Department of Economics.
Gomme, P. & Greenwood, J., 1993.
"On the Cyclical Allocation of Risk ,"
RCER Working Papers
355, University of Rochester - Center for Economic Research (RCER).
Gomme, Paul & Greenwood, Jeremy, 1995.
"On the cyclical allocation of risk ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 19(1-2), pages 91-124.
[Downloadable!] (restricted) Susanto Basu & John Fernald & Miles Kimball, 1998.
"Are technology improvements contractionary? ,"
International Finance Discussion Papers
625, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!]
Other versions:
Susanto Basu & John Fernald & Miles Kimball, 2004.
"Are Technology Improvements Contractionary? ,"
NBER Working Papers
10592, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Susanto Basu & John Fernald & Miles Kimball, 2004.
"Are technology improvements contractionary? ,"
Working Paper Series
WP-04-20, Federal Reserve Bank of Chicago.
[Downloadable!] Susanto Basu & John Fernald & Miles Kimball, 2002.
"Are Technology Improvements Contractionary? ,"
Harvard Institute of Economic Research Working Papers
1986, Harvard - Institute of Economic Research.
[Downloadable!] Susanto Basu & John G. Fernald & Miles S. Kimball, 2006.
"Are Technology Improvements Contractionary? ,"
American Economic Review ,
American Economic Association, vol. 96(5), pages 1418-1448, December.
King, Robert G., 1988.
"Money demand in the United States: A quantitative review ,"
Carnegie-Rochester Conference Series on Public Policy ,
Elsevier, vol. 29, pages 169-172.
[Downloadable!] (restricted)
Laurence Ball & David Romer, 1990.
"Real Rigidities and the Non-Neutrality of Money ,"
NBER Working Papers
2476, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Neville Francis & Valerie A. Ramey, 2002.
"Is the Technology-Driven Real Business Cycle Hypothesis Dead? ,"
NBER Working Papers
8726, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Huang, Kevin X. D. & Liu, Zheng, 2002.
"Staggered price-setting, staggered wage-setting, and business cycle persistence ,"
Journal of Monetary Economics ,
Elsevier, vol. 49(2), pages 405-433, March.
[Downloadable!] (restricted)
Other versions: Eric M. Leeper & Christopher A. Sims & Tao Zha, 1996.
"What Does Monetary Policy Do? ,"
Brookings Papers on Economic Activity ,
Economic Studies Program, The Brookings Institution, vol. 27(1996-2), pages 1-78.
[Downloadable!]
Ben S. Bernanke, 1994.
"The Macroeconomics of the Great Depression: A Comparative Approach ,"
NBER Working Papers
4814, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Ben S. Bernanke & James L. Powell, 1984.
"The Cyclical Behavior of Industrial Labor Markets: A Comparison of the Pre-War and Post-War Eras ,"
NBER Working Papers
1376, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Chirinko, Robert S, 1980.
"The Real Wage Rate over the Business Cycle ,"
The Review of Economics and Statistics ,
MIT Press, vol. 62(3), pages 459-61, August.
[Downloadable!] (restricted)
Christina D. Romer, 1999.
"Changes in Business Cycles: Evidence and Explanations ,"
Journal of Economic Perspectives ,
American Economic Association, vol. 13(2), pages 23-44, Spring.
[Downloadable!] (restricted)
Marianne Baxter & Robert G. King, 1995.
"Measuring Business Cycles Approximate Band-Pass Filters for Economic Time Series ,"
NBER Working Papers
5022, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Solon, Gary & Barsky, Robert & Parker, Jonathan A, 1994.
"Measuring the Cyclicality of Real Wages: How Important Is Composition Bias? ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 109(1), pages 1-25, February.
[Downloadable!] (restricted)
Other versions:
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Natalia Chernyshoff & David S. Jacks & Alan M. Taylor, 2005.
"Stuck on Gold: Real Exchange Rate Volatility and the Rise and Fall of the Gold Standard ,"
NBER Working Papers
11795, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Kevin X.D. Huang, 2005.
"Specific factors meet intermediate inputs : implications for strategic complementarities and persistence ,"
Research Working Paper
RWP 04-06, Federal Reserve Bank of Kansas City.
[Downloadable!]
Kevin X.D. Huang & Qinglai Meng, 2007.
"Is Forward-Looking Inflation Targeting Destabilizing? The Role of Policy's Response to Current Output under Endogenous Investment ,"
Working Papers
0704, Department of Economics, Vanderbilt University.
[Downloadable!]
Kevin Huang, 2006.
"Specific factors meet intermediate inputs: implications for the persistence problem ,"
Review of Economic Dynamics ,
Elsevier for the Society for Economic Dynamics, vol. 9(3), pages 483-507, July.
[Downloadable!] (restricted)
Dixon, Huw & Kara, Engin, 2007.
"Persistence and Nominal Inertia in a Generalized Taylor Economy: How Longer Contracts Dominate Shorter Contracts ,"
Cardiff Economics Working Papers
E2007/1, Cardiff University, Cardiff Business School, Economics Section.
[Downloadable!]
Christian Merkl & Dennis J. Snower, 2007.
"Monetary Persistence, Imperfect Competition, and Staggering Complementarities ,"
IZA Discussion Papers
3033, Institute for the Study of Labor (IZA).
[Downloadable!]
Other versions:
Christian Merkl & Dennis J. Snower, 2005.
"Monetary Persistence, Imperfect Competition, and Staggering Complementarities ,"
Kiel Working Papers
1257, Kiel Institute for the World Economy.
[Downloadable!] Merkl, Christian & Snower, Dennis J., 2006.
"Monetary Persistence, Imperfect Competition and Staggering Complementarities ,"
CEPR Discussion Papers
5658, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Kevin X. D. Huang, 2005.
"Specific factors meet intermediate inputs: implications for strategic complementarities and persistence ,"
Working Papers
04-7, Federal Reserve Bank of Philadelphia.
[Downloadable!]
Kevin X.D. Huang & Qinglai Meng, 2007.
"Distance to Frontier and the Big Swings of the Unemployment Rate: What Room is Left for Monetary Policy? ,"
Kiel Working Papers
1348, Kiel Institute for the World Economy.
[Downloadable!]
Kevin X. D. Huang & Zheng Liu, 2004.
"Inflation targeting: what inflation rate to target? ,"
Working Papers
04-6, Federal Reserve Bank of Philadelphia.
[Downloadable!]
Other versions: Auray, Stephane & de Blas, Beatriz, 2007.
"On Stickiness, Cash in Advance, and Persistence ,"
Working Papers in Economic Theory
2007/05, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
[Downloadable!]
Rajeev Dhawan & Karsten Jeske, 2007.
"Taylor rules with headline inflation: a bad idea ,"
Working Paper
2007-14, Federal Reserve Bank of Atlanta.
[Downloadable!]
Miguel Casares, 2007.
"Wage Setting Actors, StickyWages, and Optimal Monetary Policy ,"
Documentos de Trabajo - Lan Gaiak Departamento de EconomÃa - Universidad Pública de Navarra
0701, Departamento de Economía - Universidad Pública de Navarra.
[Downloadable!]
Huw Dixon & Engin Kara, 2007.
"Persistence and Nominal Inertia in a Generalized Taylor Economy: How Longer Contracts Dominate Shorter Contracts ,"
Discussion Papers
07-01, Department of Economics, University of Birmingham.
[Downloadable!]
Other versions: Huw Dixon & Engin Kara, 2006.
"Understanding inflation persistence - a comparison of different models ,"
Working Paper Series
672, European Central Bank.
[Downloadable!]
Rafel Gerke & Jens Rubart, 2005.
"The Role of Money Demand in a Business Cycle Model with Staggered Wage Contracts ,"
Darmstadt Discussion Papers in Economics
142, Institut für Volkswirtschaftslehre (Department of Economics), Technische Universität Darmstadt (Darmstadt University of Technology).
[Downloadable!]
Other versions: Louis Phaneuf & Nooman Rebei, 2007.
"Technology Shocks and Business Cycles: The Role of Processing Stages and Nominal Rigidities ,"
Working Papers
07-7, Bank of Canada.
[Downloadable!]
Luca Benati, .
"UK monetary regimes and macroeconomic stylised facts ,"
Bank of England working papers
290, Bank of England.
[Downloadable!]
Other versions: Louis Phaneuf & Nooman Rebei, 2008.
"Production Stages and the Transmission of Technological Progress ,"
Cahiers de recherche
0802, CIRPEE.
[Downloadable!]
Access and
download statistics Did you know? RePEc stands for Research Papers in Economics.
This page was last updated on 2008-7-16.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .