Reference : Investment and the Inflation-Unemployment Trade-off in a Macroeconomic Rationing Mode...
Scientific journals : Article
Business & economic sciences : Macroeconomics & monetary economics
http://hdl.handle.net/10993/11659
Investment and the Inflation-Unemployment Trade-off in a Macroeconomic Rationing Model with Monopolistic Competition
English
Sneessens, Henri mailto [Université Catholique de Louvain - UCL > IRES, Institut de recherches économiques et sociales]
1987
European Economic Review
Elsevier Science
31
3
781-815
Yes (verified by ORBilu)
International
0014-2921
Amsterdam
The Netherlands
[en] This paper develops a stylized macroeconomic rationing (or disequilibrium) model where the three well-known regimes of Keynesian Unemployment, Classical Unemployment and Repressed Inflation’ are explicitly distinguished and wherein prices and the capital stock are endogenously determined by profit maximizing firms. The framework is one of monopolistic competition. The macroeconomic price and employment relationships are derived by explicit aggregation over individual firms. Because different firms can be in different regimes, the three regimes mentioned above always coexist at the aggregate level and do so in proportions that may vary through time. This is exactly the picture conveyed by business survey results. As a result of competition, the number of firms, hence the aggregate production capacity, adjusts in the long run until pure profits are equal to zero.
Researchers
http://hdl.handle.net/10993/11659
http://www.sciencedirect.com.proxy.bnl.lu/science/journal/00142921

File(s) associated to this reference

Fulltext file(s):

FileCommentaryVersionSizeAccess
Limited access
87-Inflation-Unemployment Tradeof_EER.pdfPublisher postprint1.59 MBRequest a copy

Bookmark and Share SFX Query

All documents in ORBilu are protected by a user license.