Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/211541
Authors: 
Tarkka, Juha
Willman, Alpo
Rasi, Chris-Marie
Year of Publication: 
1989
Series/Report no.: 
Bank of Finland Discussion Papers 6/1989
Abstract: 
This paper describes the supply of labour and the determination of wages and prices in the BOF4 model. Labour supply is modelled as a function of real wage, income and discouraged worker effects. Wages are a functi on of the unemployment rate. Besides that they respond to the deviation of actual wages from equilibrium wages dictated by nominal marginal productivity. Expected inflation and taxation are entered through the separate treatment of negotiated wages. Manufacturing is assumed to be the wage leader in the economy so that developments in other sectors are affected by the wage drift in manufacturing and are tied to manufacturing wages also in the long-run.
Persistent Identifier of the first edition: 
ISBN: 
951-686-187-3
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.