Dynamic effects of regulation and deregulation in goods and labour markets

Commendatore, Pasquale ORCID: https://orcid.org/0000-0003-2938-168X and Kubin, Ingrid (2005) Dynamic effects of regulation and deregulation in goods and labour markets. Working Papers Series "Growth and Employment in Europe: Sustainability and Competitiveness", 49. Inst. für Volkswirtschaftstheorie und -politik, WU Vienna University of Economics and Business, Vienna.

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Abstract

Modern macroeconomic models with a Keynesian flavour usually involve nominal rigidities in wages and goods prices. A typical model is static and combines wage bargaining in the labour markets and monopolistic competition in the goods markets. As central policy implication it follows that deregulating labour and/or goods markets increases equilibrium employment. We reassess the consequences of deregulation in a dynamic model. It still increases employment at the fixed point, which corresponds to the static equilibrium solution. However, deregulation may also lead to stability loss and endogenous fluctuations.

Item Type:	Paper
Keywords:	Labour and goods markets deregulation / monopolistic competition / business cycles
Classification Codes:	JEL E1
Divisions:	Departments > Volkswirtschaft
Depositing User:	Repository Administrator
Date Deposited:	06 Oct 2005 09:54
Last Modified:	07 May 2021 16:01
URI:	https://epub.wu.ac.at/id/eprint/496

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