IDEAS home Printed from https://ideas.repec.org/a/bok/journl/v21y2015i1p65-100.html
   My bibliography  Save this article

Nominal Wage Contracts, Search Frictions and the Macroeconomy (in Korean)

Author

Listed:
  • Weh-Sol Moon

    (Department of Economics, Seoul Women's University)

Abstract

I construct a dynamic stochastic general equilibrium (DSGE) model characterized by money and flexible price in which search frictions and nominal wage contracts are considered. In the model, firms and workers enter into bargaining over the future nominal wage rate. Worker-firm pairs are subject to aggregate productivity shocks, money growth rate shocks, and idiosyncratic shocks. I examine to what extent the model can explain the business cycle properties of macroeconomic variables in the Korean economy. I find that the model economy with two- or three-period contracts comes close to accounting for the relative volatilities and comovements of the key macroeconomic variables.

Suggested Citation

  • Weh-Sol Moon, 2015. "Nominal Wage Contracts, Search Frictions and the Macroeconomy (in Korean)," Economic Analysis (Quarterly), Economic Research Institute, Bank of Korea, vol. 21(1), pages 65-100, March.
    • Handle: RePEc:bok:journl:v:21:y:2015:i:1:p:65-100
    as

    Download full text from publisher

    File URL: https://www.bok.or.kr/ucms/cmmn/file/fileDown.do?menuNo=600354&atchFileId=ENG_0000000001016840&fileSn=1
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Business cycle; Search frictions; Nominal contracts;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bok:journl:v:21:y:2015:i:1:p:65-100. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Economic Research Institute (email available below). General contact details of provider: https://edirc.repec.org/data/imbokkr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.