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The macroeconomics of social pacts

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  • Nicola Acocella

    (University of Rome I)

  • Giovanni Di Bartolomeo

    (University of Rome I)

  • Patrizio Tirelli

    (University of Milan Bicocca)

Abstract

In this paper we analyze macroeconomic interactions among trade unions, the central bank and the fiscal policymaker. We explicitly model trade unionsconcern for public expenditure, paving the way for an analysis of the potential gains from cooperation between the fiscal policymaker and the trade unions, i.e. the so-called corporatist or social pacts that have characterized economic policies in a number of European countries in the last few decades. We also show that central bank conservatism or administrative ceilings on public expenditure may be ineffective, as tax rates and real wage claims are strategic substitutes.

Suggested Citation

  • Nicola Acocella & Giovanni Di Bartolomeo & Patrizio Tirelli, 2004. "The macroeconomics of social pacts," Labor and Demography 0410003, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpla:0410003
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    Cited by:

    1. Friedrich Schneider & Stefan Haigner & Stefan Jenewein & Florian Wakolbinger, 2014. "Institutions of conflict management and economic growth revisited: a short note," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(3), pages 577-587, August.
    2. Colombo, Emilio & Tirelli, Patrizio & Visser, Jelle, 2014. "Reinterpreting social pacts: Theory and evidence," Journal of Comparative Economics, Elsevier, vol. 42(2), pages 358-374.
    3. Nicola Acocella, "undated". "Teoria e pratica della politica economica: l’eredità del recente passato," Working Papers 104/13, Sapienza University of Rome, Metodi e Modelli per l'Economia, il Territorio e la Finanza MEMOTEF.
    4. Cavallari, Lilia, 2012. "Optimal contracts and the role of the government in wage bargaining," Economics Letters, Elsevier, vol. 115(2), pages 160-163.
    5. Christopher Loewald & Nic Spearman Andreas Wrgtter, 2023. "Less sacrifice from collective to competitive price coordination in the South African economy," Working Papers 11049, South African Reserve Bank.

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    More about this item

    Keywords

    corporatism; monetary policy; fiscal policy;
    All these keywords.

    JEL classification:

    • J - Labor and Demographic Economics

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