IDEAS home Printed from https://ideas.repec.org/a/cje/issued/v25y1992i4p839-64.html
   My bibliography  Save this article

Some Evidence on Demand Fluctuations and the Increased Stability of the Post-war American Economy

Author

Listed:
  • Magda Kandil

Abstract

This paper investigates the implications of a sticky-wage contracting model that can explain both the decline in wage and price flexibility and the increased stability of the postwar American economy. The reduction in the size of demand shocks in the postwar period has increased agents' incentives to write longer contracts. Though longer contracts have rendered real activity more responsive to demand shocks in the postwar period, the reduction in the size of these shocks has dominated the increase in the size of response to a particular shock. Overall, real activity has become more stable in the postwar period, as predicted by theory.

Suggested Citation

  • Magda Kandil, 1992. "Some Evidence on Demand Fluctuations and the Increased Stability of the Post-war American Economy," Canadian Journal of Economics, Canadian Economics Association, vol. 25(4), pages 839-864, November.
  • Handle: RePEc:cje:issued:v:25:y:1992:i:4:p:839-64
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0008-4085%28199211%2925%3A4%3C839%3ASEODFA%3E2.0.CO%3B2-V
    Download Restriction: only available to JSTOR subscribers

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Magda Kandil, 2002. "Asymmetry In Economic Fluctuations In The Us Economy: The Pre-War And The 1946-1991 Periods Compared," International Economic Journal, Taylor & Francis Journals, vol. 16(1), pages 21-42.

    More about this item

    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:cje:issued:v:25:y:1992:i:4:p:839-64. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Werner Antweiler). General contact details of provider: http://edirc.repec.org/data/ceaaaea.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.