The claim that in policy games nonneutrality and a stagflation bias emerge in equilibrium if the unions care about inflation, per se, is discussed. This assumption is shown to be not necessary to obtain a stagflation bias; the same applies to nonneutrality if a government acts in the economy. The question of whether unions should be envisaged as ''institutions'' (i.e., interested in variables unrelated to wages and employment) is also addressed. Two model-based alternatives providing ''microeconomic'' foundations versus ''macroeconomic'' foundations to unions' behaviour are presented. The conclusion is that the modelling of unions remains an unsettled problem.

Trade unions, nonneutrality and stagflation / Acocella, Nicola; Ciccarone, Giuseppe. - In: PUBLIC CHOICE. - ISSN 0048-5829. - STAMPA. - 91:2(1997), pp. 161-178. [10.1023/a:1004948527748]

Trade unions, nonneutrality and stagflation

ACOCELLA, Nicola
;
CICCARONE, Giuseppe
1997

Abstract

The claim that in policy games nonneutrality and a stagflation bias emerge in equilibrium if the unions care about inflation, per se, is discussed. This assumption is shown to be not necessary to obtain a stagflation bias; the same applies to nonneutrality if a government acts in the economy. The question of whether unions should be envisaged as ''institutions'' (i.e., interested in variables unrelated to wages and employment) is also addressed. Two model-based alternatives providing ''microeconomic'' foundations versus ''macroeconomic'' foundations to unions' behaviour are presented. The conclusion is that the modelling of unions remains an unsettled problem.
1997
economics; employment (economic theory); equilibrium; microeconomics; unemployment -- effect of inflation on; variables
01 Pubblicazione su rivista::01a Articolo in rivista
Trade unions, nonneutrality and stagflation / Acocella, Nicola; Ciccarone, Giuseppe. - In: PUBLIC CHOICE. - ISSN 0048-5829. - STAMPA. - 91:2(1997), pp. 161-178. [10.1023/a:1004948527748]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11573/245044
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