Can Labor Market Imperfections Cause Overprovision of Public Inputs?
AbstractIn a model where trade unions dominate the labor market, a relationship is derived between the rate of unemployment and the provision of a public input in the production. This relationship implies that for conventional rates of unemployment, the public input will be overprovided compared to the first-best level.
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Bibliographic InfoPaper provided by Universidad Pablo de Olavide, Department of Economics in its series Working Papers with number 09.13.
Length: 8 pages
Date of creation: Nov 2009
Date of revision:
Public Inputs; Trade Unions.;
Other versions of this item:
- Martinez, Diego & Sjögren, Tomas, 2013. "Can Labor Market Imperfections Cause Overprovision of Public Inputs?," UmeÃ¥ Economic Studies 858, Umeå University, Department of Economics.
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
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