ARTICLE IN PRESS


Allocative and Remitted Wages:
New Facts and Challenges for
Keynesian Models
S.
*
  Basu*,, C.L. House,{
Boston College, Chestnut Hill, MA, United States

NBER, Cambridge, MA, United States
{
University of Michigan, Ann Arbor, MI, United States

Contents
1. Introduction                                      298
2. Defining “The Wage”                                  302
3. Background and Related Literature                           303
  3.1 Wage Rigidity in Historical Da ...