Price Rigidity and Wage Rigidity: Market Failure or Market Efficiency
Bibliographic record
Abstract
We observe that money wage and price level are not only rigid but also flexible in different business cycles. For example, there are inflationary recessions (e.g., oil crisis in U.S.) versus deflationary recessions (e.g., Great Depression between 1929 and 1933) as well as price rigidity (e.g., Great Depression between 1934 and 1939). Thus, the general price theory, including wage, should explain both price flexibility and price rigidity. When demand curve shifts during business cycle, the best strategy of the firm is to adjust capital and labor (i.e., size of the firm) so as to shift supply curve toward the same direction as demand curve shifts. If both supply curve and demand curve shift toward the same direction proportionally, there is perfect price rigidity. When product price is rigid, the firm is willing to pay previous wage. Thus, price rigidity and wage rigidity are effect (i.e., not only ex-post phenomenon that we observe but also endogenous market efficiency that arises from to the coordination of supply and demand), not exogenous market failure to disturb economy.
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How this classification was reachedexpand
Full frame machine prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.
Distilled classifier scores by category (both heads)
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.002 | 0.015 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.001 | 0.001 |
| Bibliometrics | 0.001 | 0.001 |
| Science and technology studies | 0.001 | 0.004 |
| Scholarly communication | 0.003 | 0.004 |
| Open science | 0.001 | 0.001 |
| Research integrity | 0.001 | 0.002 |
| Insufficient payload (model declined to judge) | 0.013 | 0.001 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from itClassification
machine, unvalidatedMachine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.
How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".