scholarly journals Efficiency Wages, Nominal Rigidities, and the Cyclical Behavior of Real Wages and Marginal Cost

1997 ◽  
Author(s):  
Michael T. Kiley
Keyword(s):  
Marginal Cost ◽  
Efficiency Wages ◽  
Nominal Rigidities ◽  
Real Wages ◽  
Cyclical Behavior

Why Does the Cyclical Behavior of Real Wages Change Over Time?

2004 ◽  
Vol 94 (4) ◽  
pp. 836-856 ◽  
Author(s):  
Kevin X. D Huang ◽  
Zheng Liu ◽  
Louis Phaneuf
Keyword(s):  
Interwar Period ◽  
Nominal Wage ◽  
Cycle Model ◽  
Real Wages ◽  
Output Structure ◽  
Price Rigidities ◽  
Wage Cyclicality ◽  
Cyclical Behavior ◽  
Business Cycle Model ◽  
Over Time

The cyclical behavior of real wages has evolved from mildly countercyclical during the interwar period to modestly procyclical in the postwar era. This paper presents a general-equilibrium business-cycle model that helps explain the evolution. In the model, changes in the real wage cyclicality arise from interactions between nominal wage and price rigidities and an evolving input-output structure.

Why Does the Cyclical Behavior of Real Wages Change Over Time?

2003 ◽  
Author(s):  
Kevin X.D. Huang ◽  
Zheng Liu ◽  
Louis Phaneuf
Keyword(s):  
Real Wages ◽  
Change Over Time ◽  
Cyclical Behavior ◽  
Over Time

A Puzzling Story: The Cyclical Behavior of Price-cost Margins / Eine verwirrende Geschichte: Das zyklische Verhalten von Preis-Kosten-Margen

1999 ◽  
Vol 218 (1-2) ◽  
Author(s):  
Susanne Wied-Nebbeling
Keyword(s):  
Average Cost ◽  
Marginal Cost ◽  
Empirical Studies ◽  
Point Of View ◽  
Cyclical Behavior

SummarySome recent empirical studies reveal countercyclical price-cost margins. From a microeconomic point of view this is not plausible because for the overwhelming number of industries, profits are highest in boom. As indicators of profitability price-cost margins should be procyclical. However, it will be shown that a margin relying on marginal cost can behave countercyclically or remains constant even with procyclical profits. A margin based on average cost is a better indicator of the development of profits. Therefore, empirical analysts should not regard different definitions of price-cost margins as equivalent.

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