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- W2064496619 abstract "Nominal wage adjustment is modelled as resulting from bargaining between a risk-neutral firm and a risk-averse worker, in an environment where the rate of inflation is a random variable. Risk aversion makes for endogenous indexation arrangements, which deliver partial indexation as they exploit imperfect inflation indices; moreover, risk aversion generates a positive correlation between indexation and inflation variance. The model suggests a distinction between complete versus incomplete inflation adjustment, on the one hand, and perfect versus imperfect adjustment, on the other." @default.
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- W2064496619 date "2003-06-01" @default.
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- W2064496619 title "Indexation Rules, Risk Aversion and Imperfect Information" @default.
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- W2064496619 doi "https://doi.org/10.1111/1467-9957.00349" @default.
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