Journal of Labor Economics Vol. 5 No. 1 1987
Estimating Strike Effects in a General Model of Prices and Quantities
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 that captures important intertemporal adjustments before, during, and after the strike to allow for inventory buildup in anticipation of the strike as well as inventory depletion during the strike and replacement afterward. The results generally indicated that both consumers and producers rationally responded to the expected and the actual event of the strike through a variety of related intertemporal adjustments; and, while the initial effects are in some instances quite pronounced, the long-run effects are usually minimal.
- DOI
- 10.1086/298134
- Volume
- 5
- Issue
- 1
- Pages
- 1-19
- Language
- en
- Sources
- openalex crossref