CONTRACTS AND MONEY

Authors
JOVANOVIC B UEDA M
Citation
B. Jovanovic et M. Ueda, CONTRACTS AND MONEY, Journal of political economy, 105(4), 1997, pp. 700-708
Citations number
22
Categorie Soggetti
Economics
Journal title
Journal of political economy → ACNP
ISSN journal
00223808
Volume
105
Issue
4
Year of publication
1997
Pages
700 - 708
Database
ISI
SICI code
0022-3808(1997)105:4<700:CAM>2.0.ZU;2-R
Abstract
Why are contracts not fully indexed? In a setting in which fully index ed contracts are feasible, we find that when price-level data are gath ered with delay, these contracts are not renegotiation-proof. The cont racts that replace them entail a lower level of welfare for the partie s to that contract. They also imply that real variables respond to nom inal shocks.