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A Behavioral Explanation for Nominal Wage Rigidity during the Great Depression Author info | Abstract | Publisher info | Download info | Related research | Statistics O'Brien, Anthony Patrick
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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.
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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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Handle: RePEc:tpr:qjecon:v:104:y:1989:i:4:p:719-35Contact details of provider: Web page: http://mitpress.mit.edu/journals/
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