Wage Adjustments, Financial Markets, and Monetary Policy

• Project/Area Number: 17K13700
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Multi-year Fund
• Research Field: Economic theory
• Research Institution: Kyoto University
• Principal Investigator: Takahashi Shuhei 京都大学, 経済研究所, 准教授 (60645406)
• Project Period (FY): 2017-04-01 – 2023-03-31
• Project Status: Completed (Fiscal Year 2022)
• Budget Amount: ¥3,900,000 (Direct Cost: ¥3,000,000、Indirect Cost: ¥900,000); Fiscal Year 2020: ¥650,000 (Direct Cost: ¥500,000、Indirect Cost: ¥150,000); Fiscal Year 2019: ¥650,000 (Direct Cost: ¥500,000、Indirect Cost: ¥150,000); Fiscal Year 2018: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000); Fiscal Year 2017: ¥1,690,000 (Direct Cost: ¥1,300,000、Indirect Cost: ¥390,000)
• Keywords: 賃金調整 / 金融市場 / 金融政策 / 長期均衡 / 労働時間 / マクロ経済 / 複数均衡 / 名目価格 / 状態依存性 / 状態依存 / 名目賃金 / 経済厚生 / 厚生 / 状態依存型賃金設定 / ニューケインジアンモデル / 借入制約 / 金融市場の不完全性 / マクロ経済学 / 景気循環

Outline of Final Research Achievements

(1) We show that long-run equilibrium is unique for an economy in which the timing of nominal wage adjustments depends on economic conditions such as inflation rates. (2) We show that in an economy in which the timing of nominal price setting depends on economic conditions, the uniqueness of long-run equilibrium holds in a stronger way under deflation than under inflation. (3) We show that changes in a borrowing limit for households have a quantitatively small effect on total hours worked.

Academic Significance and Societal Importance of the Research Achievements

本研究の学術的意義は、これまで十分解明されていなかった、名目価格・名目賃金調整が状態依存性を持つときに長期均衡が唯一であるかという問題、そして家計が直面する借入制約という金融市場の状態が総労働時間にどのような影響を与えるかという問題に対して一定の答えを出したことにある。本研究の社会的な意義は、金融政策および金融市場の状況が個々の価格・賃金調整、労働時間、経済厚生に与える影響を明らかにしたことにある。

Research Products

• [Journal Article] The uniqueness of steady-state equilibrium under state-dependent pricing: The case of deflation (2021)
  • Author(s): Takahashi Shuhei
  • Journal Title: Economics Letters Volume: 209 Pages: 110136-110136
  • DOI: 10.1016/j.econlet.2021.110136
  • Peer Reviewed
• [Journal Article] Does State-Dependent Wage Setting Generate Multiple Equilibria? (2018)
  • Author(s): Shuhei Takahashi
  • Journal Title: KIER Discussion Paper Series Volume: 991
  • Open Access
• [Presentation] The Effects of Borrowing Limits on Hours Worked and Welfare (2019)
  • Author(s): Shuhei Takahashi
  • Organizer: Australasian Meeting of the Econometric Society
  • Int'l Joint Research
• [Presentation] The Effects of Borrowing Limits on Hours Worked and Welfare (2019)
  • Author(s): Shuhei Takahashi
  • Organizer: Singapore Economic Review Conference
  • Int'l Joint Research
• [Presentation] Does State-Dependent Wage Setting Generate Multiple Equilibria? (2018)
  • Author(s): Shuhei Takahashi
  • Organizer: AEI Joint Workshop
  • Int'l Joint Research / Invited
• [Presentation] Does State-Dependent Wage Setting Generate Multiple Equilibria? (2018)
  • Author(s): Shuhei Takahashi
  • Organizer: China Meeting of the Econometric Society
  • Int'l Joint Research
• [Presentation] Does State-Dependent Wage Setting Generate Multiple Equilibria? (2018)
  • Author(s): Shuhei Takahashi
  • Organizer: International Conference on Computing in Economics and Finance
  • Int'l Joint Research
• [Presentation] Does State-Dependent Wage Setting Generate Multiple Equilibria? (2018)
  • Author(s): Shuhei Takahashi
  • Organizer: Australasian Meeting of the Econometric Society
  • Int'l Joint Research
• [Presentation] Does State-Dependent Wage Setting Generate Multiple Equilibria? (2018)
  • Author(s): Shuhei Takahashi
  • Organizer: European Meeting of the Econometric Society
  • Int'l Joint Research