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The macroeconomics of social pacts

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  • Acocella Nicola
  • Di Bartolomeo Giovanni
  • Tirelli Patrizio

Abstract

In this paper we analyze macroeconomic interactions between trade unions, the central bank and the fiscal policymaker. We explicitly model unions’ concern for public expenditure, paving the way for an analysis of the potential gains from cooperation between the fiscal policymaker and the unions, i.e. the so-called corporatist or social pacts that have characterized economic policies in a number of European countries in the last few decades. We also highlight the profoundly different incentives generated by institutional arrangements such as the Maastricht criteria and the Stability and Growth Pact. The former has unambiguously induced more efficient outcomes; the latter is likely to backfire!

Suggested Citation

  • Acocella Nicola & Di Bartolomeo Giovanni & Tirelli Patrizio, 2007. "The macroeconomics of social pacts," wp.comunite 0028, Department of Communication, University of Teramo.
  • Handle: RePEc:ter:wpaper:0028
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    Cited by:

    1. Friedrich Schneider & Stefan Haigner & Stefan Jenewein & Florian Wakolbinger, 2014. "Institutions of conflict management and economic growth revisited: a short note," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(3), pages 577-587, August.
    2. Colombo, Emilio & Tirelli, Patrizio & Visser, Jelle, 2014. "Reinterpreting social pacts: Theory and evidence," Journal of Comparative Economics, Elsevier, vol. 42(2), pages 358-374.
    3. Nicola Acocella, "undated". "Teoria e pratica della politica economica: l’eredità del recente passato," Working Papers 104/13, Sapienza University of Rome, Metodi e Modelli per l'Economia, il Territorio e la Finanza MEMOTEF.
    4. Cavallari, Lilia, 2012. "Optimal contracts and the role of the government in wage bargaining," Economics Letters, Elsevier, vol. 115(2), pages 160-163.

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    More about this item

    Keywords

    Corporatism; trade unions; fiscal policy; monetary conservativeness; policy game;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy

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