The Welfare Costs of Nominal Wage Contracting
Posted: 6 May 1998
Date Written: Undated
This paper provides quantitative estimates of the welfare costs of nominal wage contracts. We find that the welfare costs of such contracts are fairly small and are generally relatively insensitive to changes in the economic environment. We then study how contract length might respond to changes in the environment.
JEL Classification: J41, E24
Suggested Citation: Suggested Citation