This article is based upon the assumption that macroeconomic variables and prices adjust to an array of factors such as households' and firms' incentive structure or behavior.
However, prices and economic variables are also heavily structured by political process. Minimum wage may be an example of political process structuring micro and macro economic dynamics. Can we take such political factor into account?
This article is based upon the assumption that macroeconomic variables and prices adjust to an array of factors such as households' and firms' incentive structure or behavior.
However, prices and economic variables are also heavily structured by political process. Minimum wage may be an example of political process structuring micro and macro economic dynamics. Can we take such political factor into account?