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Involuntary Unemployment and Income Feedback Effects

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Author Info
Laurence Lasselle
Serge Svizzero

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Abstract

We study the link between involuntary unemployment and income feedback effects in a model with an imperfect product market. We provide a condition based on the demand such that full employment prevails when income feedback effects are neglected, while involuntary unemployment appears when they are integrated.

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Publisher Info
Paper provided by Centre for Research into Industry, Enterprise, Finance and the Firm in its series CRIEFF Discussion Papers with number 9823.

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Date of creation: Oct 1998
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Handle: RePEc:san:crieff:9823

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Postal: School of Economics and Finance, University of St. Andrews, Fife KY16 9AL
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D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. D'ASPREMONT, Claude & DOS SANTOS FERREIRA, R. & GERARD-VARET, Louis-AndrŽ, 1990. "Imperfect competition, rational expectations, and unemployment," CORE Discussion Papers 1990044, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Schultz, Christian, 1992. "The impossibility of involuntary unemployment in an overlapping generations model with rational expectations," Journal of Economic Theory, Elsevier, vol. 58(1), pages 61-76, October. [Downloadable!] (restricted)
    Other versions:
  3. Kaas, Leo, 1998. "Multiplicity of Cournot Equilibria and Involuntary Unemployment," Journal of Economic Theory, Elsevier, vol. 80(2), pages 332-349, June. [Downloadable!] (restricted)
  4. Hart, Oliver, 1982. "A Model of Imperfect Competition with Keynesian Features," The Quarterly Journal of Economics, MIT Press, vol. 97(1), pages 109-38, February. [Downloadable!] (restricted)
  5. Silvestre, Joaquim, 1990. "There May Be Unemployment When the Labour Market Is Competitive and the Output Market Is Not," Economic Journal, Royal Economic Society, vol. 100(402), pages 899-913, September. [Downloadable!] (restricted)
    Other versions:
  6. Silvestre, Joaquim, 1993. "The Market-Power Foundations of Macroeconomic Policy," Journal of Economic Literature, American Economic Association, vol. 31(1), pages 105-41, March. [Downloadable!] (restricted)
    Other versions:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Laurence Lasselle & Serge Svizzero, 2000. "On The Existence of A Cournot Equilibrium With Endogenous Income," CRIEFF Discussion Papers 0012, Centre for Research into Industry, Enterprise, Finance and the Firm.
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