Debt and wage negotiations: a bankruptcy-based approach

Article Abstract:

Debt can play a significant part in negotiations between employers and employees over wages as the inability to come to an agreement results in the default by the firm of its debt obligation. Such an assumption is premised that both parties are indispensable by virtue of their respective skills. With the eventual occurrence of bankruptcy, the lenders take over the firm and usually decide to maintain operations rather than liquidate debts. At this point, there will be a three-party negotiation involving the lenders, workers and the entrepreneur.

Compensation management, Debt, Bankruptcy

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Constant consumption as interest on capital

Article Abstract:

The analysis of total capital value as interest on capital requires that all inputs in existing production be considered as flows from explicit stocks. Using a modified and expanded version of Solow's equation, constant consumption is shown to be equal to maximum sustainable net capital product and that it exists under zero-net-investment conditions. The model is equilibrial in character and regards all prices and interest rates as endogenous.

Consumption (Economics), Capital

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Pricing to market in a small open economy

Article Abstract:

The analysis of import prices in Norway for the period 1970(1)-1991(4) shows the interrelationships among such prices, foreign prices, local costs of labor and the exchange rate. This conclusion is derived using multiregression analysis. The long-term elasticity rate was 0.63 between import prices, on one hand, and foreign prices and the exchange rate, on the other. The elasticity rate between import prices and labor costs was 0.37.

Prices and rates, Pricing, Norway, Imports

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