MONETARY REGIMES AND ENDOGENOUS WAGE CONTRACTS: SWEDEN 1908-1995
(1998)- Abstract
- We examine Gray´s theory of endogenous length of wage contracts and inflation indexation, using a uniquely long data set of blue-collar worker collective agreements in Sweden 1908-1995. Volatile monetary regimes, i. e. regimes with large macroeconomic uncertainty, are associated with short length and inflation indexed contracts. We also find inertia in changes in contract characteristics to changes in the regime. The findings support the Lucas critique, but cautions against simple divisions of time series in different regimes wherein agents' decision rules are assumed constant.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/2028937
- author
- Fregert, Klas LU and Jonung, Lars LU
- organization
- publishing date
- 1998
- type
- Working paper/Preprint
- publication status
- published
- subject
- keywords
- Monetary regime, contract length, wage indexation, Lucas critique
- language
- English
- LU publication?
- yes
- id
- e6b1abd4-82ec-44d2-a382-2e70ac187dc9 (old id 2028937)
- date added to LUP
- 2016-04-04 13:15:17
- date last changed
- 2018-11-21 21:12:53
@misc{e6b1abd4-82ec-44d2-a382-2e70ac187dc9, abstract = {{We examine Gray´s theory of endogenous length of wage contracts and inflation indexation, using a uniquely long data set of blue-collar worker collective agreements in Sweden 1908-1995. Volatile monetary regimes, i. e. regimes with large macroeconomic uncertainty, are associated with short length and inflation indexed contracts. We also find inertia in changes in contract characteristics to changes in the regime. The findings support the Lucas critique, but cautions against simple divisions of time series in different regimes wherein agents' decision rules are assumed constant.}}, author = {{Fregert, Klas and Jonung, Lars}}, keywords = {{Monetary regime; contract length; wage indexation; Lucas critique}}, language = {{eng}}, note = {{Working Paper}}, title = {{MONETARY REGIMES AND ENDOGENOUS WAGE CONTRACTS: SWEDEN 1908-1995}}, year = {{1998}}, }