Ambiguity aversion and the absence of wage indexation

Article Abstract:

A study analyzes optimal wage contracting assuming that agents are not subjective expected utility maximizers but are, ambiguity (or uncertainty) averse decision makers who maximize Choquet expected utility. The results show that such agents will choose not to include any indexation coverage in their wage contracts even when inflation is uncertain.

Forecasts, trends, outlooks, Administration of General Economic Programs, Wage & Price Stabilization, Analysis, Forecasts and trends, Inflation (Finance), Market trend/market analysis, Wage price policy, Inflation (Economics), Wage-price policy

---

The effect of macroeconomic news on beliefs and preferences: evidence from the options market

Article Abstract:

With respect to state-price densities of bond prices, the influence of macroeconomic announcements on beliefs and preferences of options market participants is analyzed.

Switzerland, Science & research, Commodity & service prices, Research, Prices and rates, Beliefs, opinions and attitudes, Bonds, Bonds (Securities), Consumer preferences, Macroeconomics, Company pricing policy, Bondholders

---

Similar abstracts:

• Abstracts: Game forms, rights, and the efficiency of social outcomes. Stochastic revealed preference and the theory of demand
• Abstracts: Institutional trades and intraday stock price behavior. The market reaction to international cross-listings: evidence from Depositary Receipts
• Abstracts: The impact of monetary policy on the exchange rate: evidence from three small open economies
• Abstracts: Time-varying risk aversion and unexpected inflation. U.S. domestic money, inflation and output. Optimal monetary policy in an economy with inflation persistence

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.