IDEAS home Printed from https://ideas.repec.org/a/bla/rdevec/v7y2003i2p266-278.html
   My bibliography  Save this article

Endogenous, Efficient Long‐Run Cyclical Unemployment, Endogenous Long‐Run Growth, and Division of Labor

Author

Listed:
  • Julan Du

Abstract

The paper uses a dynamic equilibrium model to explain the concurrence of economic growth and business cycles. Introducing durable goods into a model with ex‐ante identical consumer–producers and economies of specialized learning‐by‐doing, the author shows that when job‐shifting costs, economies of specialized learning‐by‐doing, and trading efficiency are sufficiently large, a dynamic equilibrium with business cycles and unemployment might be Pareto superior to noncyclical growth patterns. Long‐run cyclical unemployment still exists when the credit market is imperfect. Extending the model into overlapping generations framework, the author shows that complete division of labor with business cycles would still occur in equilibrium.

Suggested Citation

  • Julan Du, 2003. "Endogenous, Efficient Long‐Run Cyclical Unemployment, Endogenous Long‐Run Growth, and Division of Labor," Review of Development Economics, Wiley Blackwell, vol. 7(2), pages 266-278, May.
    • Handle: RePEc:bla:rdevec:v:7:y:2003:i:2:p:266-278
    DOI: 10.1111/1467-9361.00190
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-9361.00190
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-9361.00190?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xueping Jiang & Jen-Mei Chang & Hui Sun, 2019. "Inframarginal Model Analysis of the Evolution of Agricultural Division of Labor," Mathematics, MDPI, vol. 7(12), pages 1-14, December.
    2. Cheng, Wenli & Yang, Xiaokai, 2004. "Inframarginal analysis of division of labor: A survey," Journal of Economic Behavior & Organization, Elsevier, vol. 55(2), pages 137-174, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rdevec:v:7:y:2003:i:2:p:266-278. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.