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Article
Optimal contracts and the role of the government in wage bargaining
Economics Letters (2012)
  • Lilia Cavallari, University of Rome III
Abstract
This paper introduces a contract between the government and trade unions in a model of strategic wage bargaining à la Lippi (2003). It shows that an optimal contract can be implemented through an appropriately defined inflation target.
Keywords
  • Fiscal policy commitment,
  • wage contract,
  • wage bargaining,
  • social pact
Publication Date
2012
Citation Information
Lilia Cavallari. "Optimal contracts and the role of the government in wage bargaining" Economics Letters Vol. 115 (2012)
Available at: http://works.bepress.com/lilia_cavallari/13/