What is the relation between infrequent price adjustment and the dynamic response of the aggregate price level to monetary shocks? Caplin and Spulber (1987) provide a stark example where the answer is “none.” It is well known that by relaxing their limit assumptions some price stickiness is regained but, to our knowledge, there are no general results on this issue. In this paper we study the re...

This paper presents an integrated approach to wage and employment determination combining microeconomic evidence with macroeconomic theory. More specifically, we first develop an efficiency wage model with labor turnover and show that the worker’s decision problem gives rise to a quit-rate function. We then use microeconomic data to estimate this quit-rate function and to test the specification...

Competitiveness is divided into two broad categories named as macroeconomic and microeconomic competitiveness. Microeconomic competitiveness indicators have a direct impact on company productivity within which sate of cluster development is the most important pillar of microeconomic competitiveness that are introduced by Michael Porter and it's framework as Diamond Model. The Diamond reveals al...