This paper conducts a comprehensive review of the relationship between inflation and
unemployment in the US as described by the Phillips curve in a New Keynesian framework …

Over the past 20 years, macroeconomists have incorporated more and more results from
behavioral economics into their models. We argue that doing so has helped fixed …

This article tests for hysteresis by applying panel data unit root tests to quarterly
unemployment rates for Australian states and territories between 1982: 2 and 2002: 1. Panel …

We experimentally investigate reference group formation and the impact of social
comparisons in a three-player ultimatum game. The players compete in a real-effort task for …

The debate in Australia on the (constant‐output) elasticity of labour demand with respect to
wages has wrongly sidelined the role of capital stock as a determinant of employment …

We argue that peoples' concern for fairness may explain an unsolved puzzle in
macroeconomics: the persistence of inflation. We extend a 1990 wage-contracting model of …

This paper argues that the application of loss aversion to wage determination can explain
the deflation puzzle: the failure of persistently high unemployment to exert a persistent …

The last 20 years, the importance of a number of behavioral features has been widely
accepted within economics, and they are now regularly included in standard macro models …

To address the economic problems facing Australia in 1986 required wage restraint, which
required in turn overcoming loss aversion by workers with respect to their wages. The Prices …

Abstract In the 1930s, John Maynard Keynes and Joan Robinson observed a flex–fix
sequence of money wage adjustment, which is changes in aggregate demand may initially …