The impossibility of underemployment with more than one product market - Université de La Réunion Access content directly
Journal Articles Oxford Economic Papers Year : 2001

The impossibility of underemployment with more than one product market

Abstract

We investigate the link between 'underemployment at all wages' and income feedback effects due to firms' activities in an economy with imperfect competition in the product markets. The size of income feedback effects negatively depends on the number of product markets. We strengthen a previous result demonstrated in an overlapping generations model with inelastic price expectations: underemployment at all wages may only exist when the economy contains a single product market, i.e., when firms integrate all feedback effects in their programs.

Dates and versions

hal-02166633 , version 1 (27-06-2019)

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Laurence Lasselle, Serge Svizzero. The impossibility of underemployment with more than one product market. Oxford Economic Papers, 2001, 53 (1), pp.157-165. ⟨10.1093/oep/53.1.157⟩. ⟨hal-02166633⟩

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