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Union Cooperation and Nontraded Goods in General Equilibrium

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Author Info
Rasmussen, Bo Sandemann
Abstract

A general equilibrium model of a small open economy with traded and nontraded goods and sector-specific trade unions is set up. Wage formation is either noncooperative or cooperative. Egalitarian union wage policy is shown to be the equilibrium under cooperation. Important asymmetries are encountered and an alternative model of cooperative behavior called bargaining cooperation is proposed. Bargaining cooperation is shown to have qualitatively different implications than simple cooperation. The welfare and employment effects of bargaining cooperation compared to simple cooperation are ambiguous. Copyright 1992 by The editors of the Scandinavian Journal of Economics.

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Publisher Info
Article provided by Blackwell Publishing in its journal Scandinavian Journal of Economics.

Volume (Year): 94 (1992)
Issue (Month): 4 ()
Pages: 561-79
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Handle: RePEc:bla:scandj:v:94:y:1992:i:4:p:561-79

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  1. Sebastian Weber, 2006. "Labor Market Structures, Trade and their Effect on Unemployment: A Theoretical Analysis and Empirical Investigation," HEI Working Papers 22-2006, Economics Section, The Graduate Institute of International Studies. [Downloadable!]
  2. Bo Sandemann Rasmussen, . "International Tax Competition, Tax Cooperation and Capital Controls," Economics Working Papers 1997-9, School of Economics and Management, University of Aarhus. [Downloadable!]
  3. Bo Rasmussen, 1999. "On the Scope for International Tax Cooperation: The Role of Capital Controls," Open Economies Review, Springer, vol. 10(4), pages 395-414, October. [Downloadable!] (restricted)
  4. Steinar Holden, 2002. "Wage Setting Under Different Monetary Regimes," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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