I study the long-run effects of credit market disruptions on real firm outcomes and how these depend nominal wage rigidity at level. Exploiting variation in firms' refinancing needs during global financial crisis, trace out investment growth trajectories response to a supply shock. Financially shocked firms exhibit temporary gap for two years, resulting persistent accumulated six years after cr...

This paper examines Australian household data from over 4000 individuals to assess how downwardly flexible nominal wages have been during the period 1997 to 2000. The data indicate that there is considerable downward rigidity. Only 7.4 per cent of workers who are still working the same hours in the same job experienced a cut in pay over the previous year. People in lowincome households, unskill...

Theories of wage rigidity often rely on a positive relationship between pay changes and utility, arising from concern for fairness or gift exchange. Supportive evidence has emerged from laboratory experiments, but the link has not yet been established with field data. This paper contributes a first step, using representative British data. Workers care about the level and the growth of earnings....

4 Non-technical summary 5 7 2 10 2.1 Sectors and aggregation 10 2.2 Relative prices 11 2.3 Real exchange rate and sectoral productivity shocks 12 2.4 Nominal rigidity and aggregate supply 14 3 Autonomous monetary policy 15 4 The currency union 17 4.1 Determination of union-wide output and prices 18 4.2 Currency union’s welfare 19 4.3 Reference member state’s welfare 20 5 Relative performance an...

I evaluate the degree of misclassification error in Card and Hyslop’s (1997) method for identifying job stayers in the Current Population Survey (CPS). Benchmarking to job tenure data from the biennial CPS job tenure supplement, I find that Card and Hyslop’s method, which relies on industry and occupation codes, misclassifies approximately one-third of hourly workers. However, I also find that ...

This paper studies a two-sector New Keynesian model that captures the hump-shaped response of non-durable and durable spending to a monetary shock when non-durable prices are sticky and durable goods are flexibly priced. Based on the estimated parameters, we show that habit formation and investment adjustment costs are not sufficient to generate the gradual response of non-durable and durable s...

me with the STATA do-files necessary to estimate the maximum likelihood model used for part of this essay. Alan Manning provided me with the data from the Longitudinal Labour Force Survey.

Virtual decomposition control is applied to control a KUKA 361 six-joint industrial robot performing hybrid tasks with a rigid unilateral constraint. In order to accommodate motion/force control, the required velocity is re-designed by introducing filtered contact forces in full control dimensions, which makes the controlled robot behave as hybrid controlled for a known contact geometry and imp...

A macroeconomic model is developed in which the psychological concept of loss aversion is incorporated into agents’ preferences. The impact of monetary policy in the presence of loss aversion depends on the specification of the reference wage. The plausible specification that a worker’s reference wage is the real wage she was paid in the previous period is considered in detail. We show that an ...

This paper provides microfoundations to the Salter-Swan policy framework, a graphical apparatus designed ascertain exchange-rate and fiscal stance of policymaker with internal external economic targets. The environment is an infinite-horizon small open economy producing tradable nontradable goods that takes world prices interest rates as given populated by optimizing households firms. subject t...