TY  - JOUR
AU  - Rich,Robert
AU  - Tracy,Joseph
TI  - Uncertainty and Labor Contract Durations
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7731
PY  - 2000
Y2  - June 2000
UR  - http://www.nber.org/papers/w7731
L1  - http://www.nber.org/papers/w7731.pdf
N1  - Author contact info:
Robert Rich
Federal Reserve Bank of New York
E-Mail: robert.rich@ny.frb.org

Joseph Tracy
Executive Vice President
Federal Reserve Bank of New York
33 Liberty Street
New York, NY 10045
Tel: 212/720-6344
E-Mail: joseph.tracy@ny.frb.org
AB  - This paper provides an empirical investigation into the relationship between ex ante U.S. labor contract durations and uncertainty over the period 1970 to 1995. We construct measures of inflation uncertainty as well as aggregate nominal and real uncertainty. The results not only corroborate previous findings of an inverse relationship between contract duration and inflation uncertainty, but document that this relationship extends to both measures of aggregate uncertainty. We also explore the robustness of this relationship to the various measures of inflation uncertainty that have appeared in the literature.
ER  -