Ambiguity aversion and the absence of wage indexation
Article Abstract:
A study analyzes optimal wage contracting assuming that agents are not subjective expected utility maximizers but are, ambiguity (or uncertainty) averse decision makers who maximize Choquet expected utility. The results show that such agents will choose not to include any indexation coverage in their wage contracts even when inflation is uncertain.
Publisher: Elsevier B.V.
Publication Name: Journal of Monetary Economics
Subject: Economics
ISSN: 0304-3932
Year: 2004
Forecasts, trends, outlooks, Administration of General Economic Programs, Wage & Price Stabilization, Analysis, Forecasts and trends, Inflation (Finance), Market trend/market analysis, Wage price policy, Inflation (Economics), Wage-price policy
Publication Name: Journal of Monetary Economics
Subject: Economics
ISSN: 0304-3932
Year: 2004
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The effect of macroeconomic news on beliefs and preferences: evidence from the options market
Article Abstract:
With respect to state-price densities of bond prices, the influence of macroeconomic announcements on beliefs and preferences of options market participants is analyzed.
Publisher: Elsevier B.V.
Publication Name: Journal of Monetary Economics
Subject: Economics
ISSN: 0304-3932
Year: 2006
Switzerland, Science & research, Commodity & service prices, Research, Prices and rates, Beliefs, opinions and attitudes, Bonds, Bonds (Securities), Consumer preferences, Macroeconomics, Company pricing policy, Bondholders
Publication Name: Journal of Monetary Economics
Subject: Economics
ISSN: 0304-3932
Year: 2006
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Subjects list: United States
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