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Round-about production, co-ordination failure, technological change, and the wage-employment dilemma

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  • Amendola, M.
  • Froeschle, C.
  • Gaffard, J. -L.
  • Lega, E.

Abstract

The contrasting experiences of European and the US labour markets suggest to most analysts the conclusion that technological shocks would be the cause of the appearance of unemployment, and institutional settings, that generate real wage rigidity, would be the cause of its persistence. In this paper we intend to invalidate this conjecture. In order to do so we shall turn to an analytical framework which differs from the standard neo-classical one in that it allows to enlighten what happens step by step along a way that begins with the breaking of the existing steady state due to an attempt to bring about a change in technology.
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Suggested Citation

  • Amendola, M. & Froeschle, C. & Gaffard, J. -L. & Lega, E., 2001. "Round-about production, co-ordination failure, technological change, and the wage-employment dilemma," Journal of Economic Behavior & Organization, Elsevier, vol. 46(1), pages 1-22, September.
    • Handle: RePEc:eee:jeborg:v:46:y:2001:i:1:p:1-22
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    1. Härdle, Wolfgang & Marron, J. & Yang, L., 1996. "Discussion," SFB 373 Discussion Papers 1996,65, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    2. Mario Amendola & Jean-Luc Gaffard, 1988. "The innovative choice. An economic analysis of the dynamics of technology," Post-Print halshs-00420361, HAL.
    3. Amendola, Mario & Gaffard, Jean-Luc, 1998. "Out of Equilibrium," OUP Catalogue, Oxford University Press, number 9780198293804, Decembrie.
    4. Hicks, J R, 1970. "A Neo-Austrian Growth Theory," Economic Journal, Royal Economic Society, vol. 80(318), pages 257-281, June.
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    Cited by:

    1. Patriarca, Fabrizio & Vona, Francesco, 2013. "Structural change and income distribution: An inverted-U relationship," Journal of Economic Dynamics and Control, Elsevier, vol. 37(8), pages 1641-1658.
    2. Van Roy, Vincent & Vértesy, Dániel & Vivarelli, Marco, 2018. "Technology and employment: Mass unemployment or job creation? Empirical evidence from European patenting firms," Research Policy, Elsevier, vol. 47(9), pages 1762-1776.

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