109 research outputs found
Dundee Discussion Papers in Economics 106:Effectiveness of fiscal policy in a model of imperfect competition with transactions money
Dundee Discussion Papers in Economics 122:Monopolistic competition, efficiency wages and perverse effects of demand shock
Dundee Discussion Papers in Economics 172:Aggregate scale economies, market integration, and optimal welfare state policy
Dundee Discussion Papers in Economics 138:The life-cycle-permanent-income model: a reinterpretation and evidence
Dundee Discussion Papers in Economics 089:Market structure, cost asymmetries and fiscal policy effectiveness
Dundee Discussion Papers in Economics 113:Fiscal policy and the composition of private consumption: some evidence from the U.S. and Canada
Dundee Discussion Papers in Economics 128:Cumulative causation, capital mobility and the welfare state
Dundee Discussion Papers in Economics 126:Efficiency wages, unemployment and macroeconomic policy
We provide empirical evidence from a number of European countries, which shows that unemployment and output are positively related when unemployment is low and inversely related when unemployment is high. We then construct a stylised macro-model with goods and labour market imperfections to show that the economy can rationally operate at an inefficient equilibrium in the neighbourhood of which the relationship between output and unemployment is positive. Our results suggest that circumstances exist in which market imperfections pose serious obstacles to the smooth working of expansionary and/or stabilization policies whose final aim is to improve welfare. KEYWORDS: Efficiency wages; effort supply; monopolistic competition; multiple equilibria; stability; fiscal multiplie
Dundee Discussion Papers in Economics 105:The permanent income hypothesis revisited: reconciling evidence from aggregate data with the representative consumer behaviour
- âŚ