A Behavioral Explanation for Nominal Wage Rigidity during the Great Depression
Abstract
Nominal wages in manufacturing were left unchanged by the large decline in nominal demand that marked the first two years of the Great Depression. This rigidity in nominal wages is explained using the tools of the behavioral theory of the firm. The emphasis is on the reasons firms changed their decision rules linking fluctuations in final sales to changes in nominal wages. Copyright 1989, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.Download Info
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Bibliographic Info
Article provided by MIT Press in its journal Quarterly Journal of Economics.
Volume (Year): 104 (1989)
Issue (Month): 4 (November)
Pages: 719-35
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Web page: http://mitpress.mit.edu/journals/
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Web: http://mitpress.mit.edu/journal-home.tcl?issn=00335533
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Lundborg, Per, 2000. "Taxes, Risk Aversion and Unemployment Insurance as Causes of Wage Rigidity," Working Paper Series 160, Trade Union Institute for Economic Research.
- George A. Akerlof, 2007. "The Missing Motivation in Macroeconomics," American Economic Review, American Economic Association, vol. 97(1), pages 5-36, March.
- Randall E. Parker & Phillip Rothman & Original: August 2000. This version: June 2003., .
"An Examination of the Asymmetric Effects of Money Supply Shocks in the Pre-World War I and Interwar Periods,"
Working Papers
0011, East Carolina University, Department of Economics.
- Randall E. Parker & Philip Rothman, 2004. "An Examination of the Asymmetric Effects of Money Supply Shocks in the Pre--World War I and Interwar Periods," Economic Inquiry, Western Economic Association International, vol. 42(1), pages 88-100, January.
- Randall E. Parker & Phillip Rothman & Original: August 2000. This version: June 2003., . "An Examination of the Asymmetric Effects of Money Supply Shocks in the Pre-World War I and Interwar Periods," Working Papers 0302, East Carolina University, Department of Economics.
- Julia Darby & Robert A. Hart, 2008.
"Wages, Productivity, and Work Intensity in the Great Depression,"
Southern Economic Journal,
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- Darby, Julia & Hart, Robert A., 2002. "Wages, Productivity, and Work Intensity in the Great Depression," IZA Discussion Papers 543, Institute for the Study of Labor (IZA).
- Julia Darby & Robert A Hart, . "Wages, Productivity and Work Intensity in the Great Depression," Working Papers 2002_7, Business School - Economics, University of Glasgow, revised Jul 2002.
- Christopher Hanes, 2000. "Nominal Wage Rigidity and Industry Characteristics in the Downturns of 1893, 1929, and 1981," American Economic Review, American Economic Association, vol. 90(5), pages 1432-1446, December.
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International Finance Discussion Papers
591, Board of Governors of the Federal Reserve System (U.S.).
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- Michael D. Bordo & Christopher J. Erceg & Charles L. Evans, 1997. "Money, sticky wages, and the Great Depression," Working Paper Series, Macroeconomic Issues WP-97-02, Federal Reserve Bank of Chicago.
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- Ben Bernanke & Harold James, 1990. "The Gold Standard, Deflation, and Financial Crisis in the Great Depression: An International Comparison," NBER Working Papers 3488, National Bureau of Economic Research, Inc.
- Janet L. Yellen & George A. Akerlof, 2006.
"Stabilization Policy: A Reconsideration,"
Economic Inquiry,
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"Employment and Unemployment in the 1930s,"
NBER Working Papers
4174, National Bureau of Economic Research, Inc.
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- Harold L. Cole & Lee E. Ohanian, 2000.
"Re-examining the contributions of money and banking shocks to the U.S. Great Depression,"
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