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Estimating Strike Effects in a General Model of Prices and Quantities

Morley Gunderson () and Angelo Melino ()

Journal of Labor Economics, 1987, vol. 5, issue 1, 1-19

Abstract: Estimates of the effect of strikes on the production, price, and purchases of North American automobiles are provided over the period 1966-79. The estimates are based on a model that reflects the decisions of both consumers and producers, and captures important intertemporal adjustments to allow for inventory buildup in anticipation of inventory depletion during, and replacements after, a strike. The results indicate that consumers and producers rationally responded to the strike through a variety of related intertemporal adjustment and, while the initial effects can be quite pronounced, the long-run effects are usually minimal. Copyright 1987 by University of Chicago Press.

Date: 1987
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