The extent of downward nominal wage rigidity: New evidence from payroll data

Schaefer, Daniel; Singleton, Carl

doi:10.1016/j.red.2022.11.006

Cited by 8 publications

(2 citation statements)

References 47 publications

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“…The downward rigidity of prices, a concept developed by J.M. Keynes in his "The General Theory of Employment, Interest and Money", has been investigated in economic literature and, to a large extent, focused rigidity of wages (Fallick, et al, 2022;Schaefer & Singleton, 2022), stocks (Chen, 2007) and commodity prices (Chen & Sun, 2021;Giulietti, et al, 2020). The sluggish response of prices to exogenous shocks, a property also referred to as sticky pricing, has also been addressed theoretically and empirically in housing literature and is typically linked to loss aversion behavior (Genesove & Mayer, 2001.…”

Section: Literature Reviewmentioning

confidence: 99%

Supply, Demand and Asymmetric Adjustment of House Prices in Poland

Gluszak,

Trojanek

2024

Real Estate Management and Valuation

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In recent years, a lot of empirical effort has been made to search for potential nonlinear responses of house prices to various demand and supply factors. This paper examines Poland's heterogeneous regional housing market reactions to key economic variables from 2000 to 2022. The study raises two research questions related to the asymmetric adjustment of housing markets to selected demand and supply shocks. Firstly, we ask whether the house price adjustments to negative shocks are relatively minor (for example, during an economic downturn) when compared to positive shocks (prevalent in booming markets), mainly due to the loss aversion behavior theory and nominal rigidity of house prices. In particular, we test the hypothesis that house prices react more to positive impulses from supply and demand than negative ones. Secondly, we investigate whether market reactions are similar for large and small metropolitan markets. The second hypothesis posits that metropolitan housing markets adjust asymmetrically to demand and supply shocks based on the city size (population and housing stock in a given city). The study uses a nonlinear ARDL model to test the research hypotheses empirically. This paper provides new insights into the nonlinear reactions of house prices to exogenous shocks and adds to the limited empirical evidence from less developed economies.

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Section: Literature Reviewmentioning

confidence: 99%

Supply, Demand and Asymmetric Adjustment of House Prices in Poland

Gluszak,

Trojanek

2024

Real Estate Management and Valuation

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“…by slowing promotions, cutting bonuses, adjusting working hours or choosing cheaper hires to replace workers who leave the firm (Babecký et al, 2012(Babecký et al, , 2019. Recent research has also confirmed that base wage cuts are rare in Great Britain (Schaefer and Singleton, 2022) and the United States (Grigsby et al, 2021), while the adjustment of flexible pay is more pervasive. Likewise, in case firms offer worker insurance within the firm, they can forego profits to absorb shocks (Guisoet al, 2005).…”

Section: Introductionmentioning

confidence: 99%