Share contracts and macroeconomic externalities

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Abstract

Weitzman's analysis of the share economy contrasts fixed-wage and fixed-share contracts; this paper notes that neither is an optimal labor contract, rendering the comparison suspect. Given this comparison, though, share contracts may be superior to wage contracts in an economy characterized by a "macroeconomic externality," whereby firm-level employment decisions affect the demand for other firms' goods.

Original languageEnglish (US)
Pages (from-to)421-426
Number of pages6
JournalJournal of Comparative Economics
Volume10
Issue number4
DOIs
StatePublished - Dec 1986

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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