Journal ArticleDOI
Indeterminacy in a finance constrained unionized economy
TLDR
In this article, the authors introduce labor unions and unemployment in a finance constrained monetary economy with heterogenous agents and productive labor externalities, and find that unions, introducing endogenous markup variability, influence the dynamics of the model.About:
This article is published in Journal of Mathematical Economics.The article was published on 2007-04-01. It has received 11 citations till now. The article focuses on the topics: Elasticity of substitution & Marginal product of labor.read more
Citations
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Journal ArticleDOI
Tax Rate Variability and Public Spending as Sources of Indeterminacy
TL;DR: In this article, the role of public spending,financed by labor income and consumption taxation, on the emergence of indeterminacy was analyzed in a constant returns to scale, one sector economy with segmented asset markets of the Woodford type.
Journal ArticleDOI
Indeterminacy, bifurcations, and unemployment fluctuations
TL;DR: In this article, the authors incorporate imperfectly insured unemployment in the finance constrained economy proposed by Woodford (1986), by introducing unions and unemployment benefits financed by labor taxation, and show that this simple extension of the Woodford model changes drastically its stability conditions and local dynamics around the steady state.
Journal ArticleDOI
Negishi-Solow Efficiency Wages, Unemployment Insurance and Dynamic Deterministic Indeterminacy
TL;DR: In this paper, the authors introduce efficiency wages designed to provide workers with incentives to make appropriate effort levels, and involuntary unemployment, along the pioneering lines of Negishi (1979), Solow ( 1979), Shapiro and Stiglitz (1984), in a dynamic model involving heterogeneous agents and financial constraints as in Woodford (1986) and Grandmont, Pintus and de Vilder (GPV, 1998).
Journal ArticleDOI
Negishi–Solow efficiency wages, unemployment insurance and dynamic deterministic indeterminacy
TL;DR: In this article, the authors introduce efficiency wages designed to provide workers with incentives to make appropriate effort levels, and involuntary unemployment, along the pioneering lines of Negishi (1979), Solow ( 1979), Shapiro and Stiglitz (1984), in a dynamic model involving heterogeneous agents and financial constraints as in Woodford (1986) and Grandmont, Pintus and de Vilder (GPV, 1998).
Market imperfections and endogenous fluctuations: a general approach
TL;DR: In this article, the authors provide a methodology to study the role of distortions and market failures on endogenous fluctuations and identify the several parameters' configurations under which local indeterminacy and bifurcations occur.
References
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Book ChapterDOI
The Economic Implications of Learning by Doing
TL;DR: It is by now incontrovertible that increases in per capita income cannot be explained simply by increases in the capital-labor ratio as mentioned in this paper, and that knowledge is growing in time.
Journal ArticleDOI
Aggregate Demand Management in Search Equilibrium
TL;DR: In this article, a simple barter model with identical risk-neutral agents where trade is coordinated by a stochastic matching process is analyzed for a simple single-agent setting, and it is shown that there are multiple steady-state rational expectations equilibria, with all non-corner solution equilibrium inefficient.
Journal ArticleDOI
Indeterminacy and Increasing Returns
Jess Benhabib,Roger E. A. Farmer +1 more
TL;DR: In this article, the authors investigate properties of the one-sector growth model with increasing returns under two organizational structures capable of reconciling the existence of aggregate increasing returns with competitive behavior by firms.
Journal ArticleDOI
Real Business Cycles and the Animal Spirits Hypothesis
Roger E. A. Farmer,Jang-Ting Guo +1 more
TL;DR: The authors calibrates a quantitative equilibrium macroeconomic model with an aggregate technology that is subject to increasing returns and show that this model may display fluctuations at business cycle frequencies even when there are no shocks to the fundamentals of the economy.
Journal ArticleDOI
Non-Cooperative Bargaining Theory: An Introduction
TL;DR: Hahn as mentioned in this paper provides an informal introduction to some of the main themes of the recent literature on "non-cooperative" or "sequential" bargaining models, focusing in particular on the relationship between the new approach and the traditional axiomatic approach exemplified by "Nash bargaining theory".