DÕASPREMONT, Claude (UniversitŽ catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE)) DOS SANTOS FERREIRA, Rodolphe GERARD-VARET, Louis-AndrŽ
Additional information is available for the following
registered author(s):
It is the study of the trade cycle during the thirties that made imperfectly competitive output markets a major theme in macroeconomics, principally under the lead of Harrod. Both him and Keynes were referring at the same time to a supposed feature of business cycles, namely the counter cyclicality of real wages, which was however going to be very soon contested. Empirical evidence, as well as other more speculative considerations, induced an important flow of theoretical arguments developed byseveral authors during a very short period, at the eve of the second World War. We propose to examine these aborted guidelines already exhibiting the main ingredients of the New Keynesian research programme only developed one half century later: imperfectly competitive goods markets (with costly price adjustment, economies of scale and cyclical behaviour of markups), imperfectly competitive labour markets (with wage negotiations, implicit contracts and efficiency wages), and finally coordination failures.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number
2007079.