Prices and Quantities: A Macroeconomic Analysis

Bodkin, Ronald G.; Okun, Arthur M.

doi:10.2307/134680

Cited by 11 publications

(13 citation statements)

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“…Among explanations focusing on frictions, our results are most obviously consistent with a model in which St Paul's faced high costs of hiring and training workers, and so "tenure mattered." 43 If turnover costs were significant, there would be an incentive for the clerk to create longterm bonds, such as implicit contracts, that could provide this form of job security (Okun 1982). To reduce the costs of turnover while posting fixed wages, some workers were given access to additional income through more consistent work and a higher probability of being rehired after seasonal breaks.…”

Section: Discussionmentioning

confidence: 99%

Job Tenure and Unskilled Workers before the Industrial Revolution: St Paul’s Cathedral 1672–1748

Paker,

Stephenson,

Wallis

2023

J. Econ. Hist.

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How were unskilled workers selected and hired in preindustrial labor markets? We exploit records from the rebuilding of St Paul’s Cathedral, London (1672–1748), to analyze the hiring and employment histories of over 1,000 general building laborers, the benchmark category of “unskilled” workers in long-run wage series. Despite volatile demand, St Paul’s created a stable workforce by rewarding the tenure of long-standing workers. More senior workers received more days of work each month, preference when jobs were scarce, and the opportunity to earn additional income. We find the cathedral’s strategy consistent with reducing hiring frictions and turnover costs.

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Section: Discussionmentioning

confidence: 99%

Job Tenure and Unskilled Workers before the Industrial Revolution: St Paul’s Cathedral 1672–1748

Paker,

Stephenson,

Wallis

2023

J. Econ. Hist.

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“…Thus, sticky prices are the direct consequence of market failure, where the market price loses its signaling function, causing welfare losses for market players. Sticky prices have been associated with the existence of nominal or implicit contracts (Okun, 1981), retailer strategic pricing (Owen & Trzepacz, 2002), psychological pricing points (Kashyap, 1995; Snir et al, 2022), and coordination failure (Ball & Romer, 1989). However, price rigidity may lead to several outcomes that can be consistent with perfect competition.…”

Section: Literature and Evidencementioning

confidence: 99%

Price rigidity, wholesale price passthrough, and quality‐tiered private labels

Anders

Volpe

Bittmann³

2023

Manage Decis Econ

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Quality‐tiered private labels have become a main strategy for grocery retailers. However, impacts of private label development on wholesale prices and their effects on retail price rigidity remain unanswered as appropriate wholesale price data remain scarce. This paper fills this research gap by analyzing retail‐pricing behavior and wholesale passthrough for categories with quality‐tier differentiated private labels. We find the speed of wholesale passthrough to differ across categories, quality tier, and direction of adjustment. Overall, we find wholesale prices to play a secondary role to price promotions in explaining price rigidity across grocery categories with quality‐tiered private labels.

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“…The left-and right-hand sides of Equation (3c) indicate marginal revenue and marginal cost, respectively. However, Okun (1981) points out that frequent price changes may lose customer's credit with the product. Hence, the firm should choose the price from a medium-and long-term perspective.…”

Section: The Long-and Short-run Production Function and The Price Dec...mentioning

confidence: 99%

Financial dynamics in the medium run

Watanabe

2022

Metroeconomica

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We develop a medium-run dynamic model to investigate the effects of financial factors and production technique on a capitalist economy. We incorporate neoclassical elements and contributions of Keynes, Kalecki, and Minsky into the model. We formulate a price decision and endogenous money supply mechanism. The medium-run steady state is constrained by the normal capacity utilization rate. Moreover, the economy can become endogenously unstable if bank lending reacts excessively to the firm's profit rate. In a stable economy, an increase in the target-inflation rate increases the expected inflation rate and interbank rate but does not affect the optimal labor-capital ratio.

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Prices and Quantities: A Macroeconomic Analysis

Cited by 11 publications

References 0 publications

Job Tenure and Unskilled Workers before the Industrial Revolution: St Paul’s Cathedral 1672–1748

Job Tenure and Unskilled Workers before the Industrial Revolution: St Paul’s Cathedral 1672–1748

Price rigidity, wholesale price passthrough, and quality‐tiered private labels

Financial dynamics in the medium run

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