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Žymantas Budrys

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Striking a Bargain: Narrative Identification of Wage Bargaining Shocks

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By Lietuvos bankas, Vilnius Vilnius Lithuania, Žymantas Budrys
| Wiley Online Library Verified
1 Introduction Fluctuations in the labor wedge account for a sizable share of business cycle variation (Chari et al. 2007), but wage markup shocks—the usual way those fluctuations are identified in workhorse policy models (Smets and Wouters 2007; Del Negro et al. 2015; Coenen et al. 2018)—are arguably too broadly defined to provide robust policy prescriptions.
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