IDEAS home Printed from https://ideas.repec.org/a/spr/specre/v2y2000i3p231-248.html
   My bibliography  Save this article

Irreversibilities, uncertainty and underemployment equilibria

Author

Listed:
  • David de la Croix

    (National Fund for Scientific Research and University of Louvain, IRES, Place Montesquieu 3, B-1348 Louvain-la-Neuve, Belgium FEDEA, Calle Jorge Juan 46, 28001 Madrid, Spain)

  • Omar Licandro

    (National Fund for Scientific Research and University of Louvain, IRES, Place Montesquieu 3, B-1348 Louvain-la-Neuve, Belgium FEDEA, Calle Jorge Juan 46, 28001 Madrid, Spain)

Abstract

In a competitive overlapping generations model, technological irreversibilities and idiosyncratic uncertainty generate a misallocation of resources among segments, which takes the form of underemployment and underutilization of capacities at the aggregate level. This affects the qualitative properties of the equilibrium path. Indeed, increases in the variance of the technological shock can be responsible, a.o., for an "inescapable poverty trap," or for periodic orbits generating endogenous fluctuations in underemployment.

Suggested Citation

  • David de la Croix & Omar Licandro, 2000. "Irreversibilities, uncertainty and underemployment equilibria," Spanish Economic Review, Springer;Spanish Economic Association, vol. 2(3), pages 231-248.
    • Handle: RePEc:spr:specre:v:2:y:2000:i:3:p:231-248
    as

    Download full text from publisher

    File URL: http://link.springer.de/link/service/journals/10108/papers/0002003/00020231.pdf
    Download Restriction: Access to the full text of the articles in this series is restricted
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Underemployment; underutilization; irreversibility; poverty trap; endogenous fluctuations;
    All these keywords.

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

    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:spr:specre:v:2:y:2000:i:3:p:231-248. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.