Arbeitspapier
Re-examining the role of sticky wages in the U.S. Great Contraction: A multi-sector approach
We quantify the role of contractionary monetary shocks and wage rigidities in the U.S. Great Contraction. While the average economy-wide real wage varied little over 1929-33, real wages rose significantly in some industries. We calibrate a two-sector model with intermediates to the 1929 U.S. economy where wages in one sector adjust slowly. We find that nominal wage rigidities can account for less than a fifth of the fall in GDP over 1929-33. Intermediate linkages play a key role, as the output decline in our benchmark is roughly half as large as in our two-sector model without intermediates.
- Language
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Englisch
- Bibliographic citation
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Series: EPRI Working Paper ; No. 2012-5
- Classification
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Wirtschaft
Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy: General (includes Measurement and Data)
Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)
Monetary Policy, Central Banking, and the Supply of Money and Credit: General
- Subject
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Great Depression
Sectoral Models
Sticky Wages
Lohnrigidität
Reallohn
Geldangebot
Schock
Konjunktur
Mehr-Sektoren-Modell
USA
- Event
-
Geistige Schöpfung
- (who)
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Amaral, Pedro S.
MacGee, James C.
- Event
-
Veröffentlichung
- (who)
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The University of Western Ontario, Economic Policy Research Institute (EPRI)
- (where)
-
London (Ontario)
- (when)
-
2012
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Amaral, Pedro S.
- MacGee, James C.
- The University of Western Ontario, Economic Policy Research Institute (EPRI)
Time of origin
- 2012
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