Open AccessProductivity growth and volatility: how important are wage and price rigidities?
Author(s) -
Barbara Annicchiarico,
Alessandra Pelloni
Publication year - 2013
Publication title -
oxford economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.68
H-Index - 69
eISSN - 1464-3812
pISSN - 0030-7653
DOI - 10.1093/oep/gpt013
Subject(s) - economics , volatility (finance) , imperfect competition , wage growth , productivity , wage , monetary economics , imperfect , real wages , competition (biology) , labour economics , econometrics , macroeconomics , microeconomics , linguistics , philosophy , ecology , biology
We study the implications of having different sources of nominal rigidities on the relationship between productivity growth and shocks volatility in a model with procyclical R&D and imperfect competition in goods and labour markets. We show that the effects of uncertainty on long-term growth not only depends on the source of fluctuations, as recent literature shows, but also, and crucially, on whether prices and/or wages are rigid
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