Monetary shocks with variable effort

Frank Walsh

Open Access publications from School of Economics, University College Dublin

Abstract: In a model with rigid nominal wages, full information and competitive product markets, I show that when an effort augmented production function is incorporated into an analysis of supply and demand shocks, the outcomes are in line with traditional Keynesian analysis for a wide range of parameter values. Monetary shocks can increase output and employment.

Keywords: Sticky nominal wage; Efficiency wages; Efficiency wage theory; Labor market (search for similar items in EconPapers)
JEL-codes: E12 E24 J41 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2005-03
References: Add references at CitEc
Citations:

Published in: Journal of Macroeconomics, 27(1) 2005-03

Downloads: (external link)
http://hdl.handle.net/10197/190 Open Access version, 2005 (application/pdf)

Related works:
Journal Article: Monetary shocks with variable effort (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucn:oapubs:10197/190

Access Statistics for this paper

More papers in Open Access publications from School of Economics, University College Dublin Contact information at EDIRC.
Bibliographic data for series maintained by Nicolas Clifton ().