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Estimating Strike Effects in a General Model of Prices and Quantities

Author

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  • Gunderson, Morley
  • Melino, Angelo

Abstract

Estimates of the effect of strikes on the production, price, and purchases of North American automobiles are provided over the period 1966-79. The estimates are based on a model that reflects the decisions of both consumers and producers, and captures important intertemporal adjustments to allow for inventory buildup in anticipation of inventory depletion during, and replacements after, a strike. The results indicate that consumers and producers rationally responded to the strike through a variety of related intertemporal adjustment and, while the initial effects can be quite pronounced, the long-run effects are usually minimal. Copyright 1987 by University of Chicago Press.

Suggested Citation

  • Gunderson, Morley & Melino, Angelo, 1987. "Estimating Strike Effects in a General Model of Prices and Quantities," Journal of Labor Economics, University of Chicago Press, vol. 5(1), pages 1-19, January.
    • Handle: RePEc:ucp:jlabec:v:5:y:1987:i:1:p:1-19
    DOI: 10.1086/298134
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    Cited by:

    1. Bastos, Paulo & Kreickemeier, Udo & Wright, Peter, 2009. "Oligopoly, open shop unions and trade liberalisation," International Journal of Industrial Organization, Elsevier, vol. 27(6), pages 679-686, November.
    2. Posch, Olaf, 2009. "Structural estimation of jump-diffusion processes in macroeconomics," Journal of Econometrics, Elsevier, vol. 153(2), pages 196-210, December.
    3. Fernando Coloma & Arturo Alegría, "undated". "Huelga: Enfoques Teóricos y Efectos Económicos de Disfrutar Regulaciones," Documentos de Trabajo 141, Instituto de Economia. Pontificia Universidad Católica de Chile..
    4. James McDonald & Harry Bloch, 1999. "The Spillover Effects of Industrial Action on Firm Profitability," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 15(2), pages 183-200, September.

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