Asymmetric wage indexation

• Published in: Atlantic economic journal Vol. 30; no. 1; pp. 34 - 47
• Main Authors: Hoose, David, Cover, James Peery
• Format: Journal Article
• Language: English
• Published: New York International Atlantic Economic Society 01.03.2002; Springer; Springer Nature B.V
• Series: Atlantic Economic Journal
• Subjects: Analysis; Economic models; Economic research; Economic theory; Economics; Indexation; Indexation (Economics); Inflation (Finance); Labor economics; Studies; United States; Wages; Wages & salaries; United States

Models of wage indexation uniformly have been based on the simplifying assumption that nominal wages adjust upward or downward symmetrically with unexpected price increases or decreases. Indexation typically is asymmetric in actual contracts, however. Wages are indexed to price increases but not to...