Commendatore, Pasquale 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 |
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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 07:54 |
Last Modified: | 22 Oct 2019 00:41 |
URI: | https://epub.wu.ac.at/id/eprint/496 |
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