JOURNAL ARTICLE
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Lohnindexierung und Geldpolitik bei informativen Preisen
Adolph, Brigitte | Wolfstetter, Elmar
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 108 (1988), Iss. 3 : pp. 335–353
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Adolph, Brigitte
Wolfstetter, Elmar
Abstract
The novelty of this paper is that wage-price-indexation is viewed as a statistical inference problem - from observable prices to productivity. Indexation serves the allocation of risk. The market equilibrium exhibits full indexation whenever prices are uninformative. In turn, partial indexation results if observing a higher price allows the inference that productivity has reached a lower level, in the sense of firstdegree stochastic dominance. With informative prices, increased monetary volatility leads to lower social welfare. The statistical inference from prices to productivity is blurred; hence, indexation is less fit to control the allocation of risk.