The Welfare Cost of Nominal Wage Contracting
用动态一般均衡模型估算名义工资合约的福利成本，发现指数化程度、货币冲击大小与持续性、合约长度以及劳动供给弹性都会显著影响福利成本。
We use a dynamic general equilibrium model to obtain quantitative estimates of the welfare cost of nominal wage contracting. We find that the welfare cost of such contracts can vary quite a lot depending on the degree of indexation, the size and persistence of monetary shocks and the contract length. The size and persistence of technology shocks do not affect the welfare cost significantly. The elasticity of labour supply is important for the welfare cost. If the labour supply elasticity is small the welfare cost of nominal wage contracts can be substantial.