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Economic Growth : The Case of Irreversibility of Investment with Bargaining Power of Workers

Author

Listed:
  • Isabelle Terraz

    (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique)

Abstract

In this paper, we develop a model of endogenous growth with search frictions in the labor market. We show that the growth rate of the economy may be durably altered in a case of investment irreversibility and bargaining power of workers. Labor market conditions mitigate this rent-seeking effect of workers.

Suggested Citation

  • Isabelle Terraz, 2015. "Economic Growth : The Case of Irreversibility of Investment with Bargaining Power of Workers," Post-Print hal-01723792, HAL.
    • Handle: RePEc:hal:journl:hal-01723792
    DOI: 10.1080/10168737.2015.1136665
    as

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