But, if prices do not react immediately to a demand or supply impulse, this situation is referred to as price rigidities
, and their existence has an important impact on the overall economic performance (Andersen, 1994).
The major consequence of rigidities
in the Turkish labor market is the existence of a large informal segment.
Significant nominal and real rigidities
(1) in the pricing of traded goods are shown in my work with Roberto Rigobon.
If the skins present different materials and unequal thickness, with dissimilar skins and taking into consideration that the local flexural rigidities
for the skins cannot be neglected, this means that:
In the United States, there are relatively few market rigidities
and the share of the working-age population with higher education is greater than in other advanced countries, albeit the market rigidities
gap between the United States and other Anglo-Saxon countries remains quite small.
Working on the assumption that money is not neutral, economists in the mid-1990s then started to introduce nominal price rigidities
into these models, now also known as Dynamic Stochastic General Equilibrium (DSGE) models.
A bout of inflation now might temporarily reduce unemployment, but unless labor market rigidities
are eliminated, it will soon be time to raise the target once again.
While several factors related to price and wage determination in an imperfectly competitive environment could account for such effects, the presence of downward nominal wage rigidities
has received the most attention.
Ideas and programs may have mattered more than the rigidities
On this basis the authors introduce the three main areas of New Keynesian Economics: Real rigidities
, nominal rigidities
, co-ordination failures and hysteresis.
The breakers' recourse to choreographed rigidities
and robotisms arises as a caveat in the face of exactly the threat it wants to fend off.
between 40% and 70% represent various degrees of stiffness.
To emphasize the role of nominal rigidities
in the product market, the nominal wage is allowed to freely change in a competitive labor market.
in public expenditures will not appear as constraining in the context of a growing economy, but earmarking provisions will drive the spending base up, limiting the potential for deficit reduction.
lambda][phi]] deformation there may be defined the matrix of fundamental rigidities
, [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII], and the matrix of fundamental compliances, [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII].