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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/20293| Title: | Equilibrium Unemployment and Investment Under Product and Labour Market Imperfections |
| Keywords: | E22 J51 E24 L11 ddc:330 equilibrium unemployment product market imperfections investment wage bargaining Arbeitslosigkeit Arbeitsmarkttheorie Unvollkommener Markt Wettbewerb Investition Lohnverhandlungstheorie Kapitalintensität Theorie |
| Issue Date: | 16-Oct-2013 |
| Publisher: | |
| Description: | We study the implications of product market competition and investment for price setting, wage bargaining and thereby for equilibrium unemployment in an economy with product and labour market imperfections. We show that intensified product market competition will reduce equilibrium unemployment, whereas the effect of increased capital intensity is more complex. Higher capital intensity will decrease the equilibrium unemployment when the elasticity of substitution between capital and labour is less than one, while the reverse happens when this elasticity is higher than one but smaller than the elasticity of substitution between products. Finally, we demonstrate how labour and product market imperfections, characterized by the wage and price setting mark-ups, affect the optimal capital stock. Our findings raise important questions for future empirical research. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/20293 |
| Other Identifiers: | http://hdl.handle.net/10419/20293 ppn:38095074X |
| Appears in Collections: | EconStor |
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