Returns to labour and chaotic cycles of wage and employment
AbstractThis paper discusses the dynamics of a standard (double Cobb-Douglas) labour market under the circumstance of changes in returns to labour. Despite the simplicity as well as the vast diffusion of this model, such an issue has so far escaped closer scrutiny by economic dynamics literature. This investigation shows: i) possible chaotic behaviours in a simple walrasian market, ii) the multiple roles that returns to labour play on the stability, and iii) the corresponding implications for stabilization policy.
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Bibliographic InfoPaper provided by Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy in its series Discussion Papers with number 2012/150.
Date of creation: 01 Sep 2012
Date of revision:
chaos; walrasian labour market; returns to labor.;
Find related papers by JEL classification:
- E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
- J0 - Labor and Demographic Economics - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-03 (All new papers)
- NEP-LAB-2012-11-03 (Labour Economics)
- NEP-MAC-2012-11-03 (Macroeconomics)
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