Imperfect competition, general equilibrium and unemployment
We analyze whether different learning abilities of firms with respect to general equilibrium effects lead to different levels of unemployment. We consider a general equilibrium model where firms in one sector compete à la Cournot and a real wage rigidity leads to unemployment. If firms consider onl...
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| Hauptverfasser: | , |
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| Dokumenttyp: | Buch/Monographie Arbeitspapier |
| Sprache: | Englisch |
| Veröffentlicht: |
München
CESifo
1999
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| Schriftenreihe: | CESifo Working Paper
224 |
| In: |
CESifo working papers (224)
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| Schlagworte: | |
| Online-Zugang: | Resolving-System, kostenfrei, Volltext: http://hdl.handle.net/10419/75630
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| Verfasserangaben: | Hans Gersbach; Achim Schniewind |
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| 245 | 1 | 0 | |a Imperfect competition, general equilibrium and unemployment |c Hans Gersbach; Achim Schniewind |
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| 490 | 1 | |a CESifo Working Paper |v 224 | |
| 520 | |a We analyze whether different learning abilities of firms with respect to general equilibrium effects lead to different levels of unemployment. We consider a general equilibrium model where firms in one sector compete à la Cournot and a real wage rigidity leads to unemployment. If firms consider only partial equilibrium effects when choosing quantities, the observation of general equilibrium feedback effects will lead to repeated quantity adjustments until a steady state is reached. When labor is im mobile across industries, unempolyment in the steady state is lower than when all general equilibrium effects are incorporated at once. The opposite result is true if labor is mobile. | ||
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| 650 | 4 | |a unemployment |7 (dpeaa)DE-206 | |
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