Modelling Market Power in Labour and Product Markets in a Dynamic Economy
AbstractIn this paper a unified framework is developed for modelling imperfect competition in a monopolistic economy and in a unionised economy in a dynamic setting. Concentrating on the steady state analysis, a graphical approach is developed in consumption/leisure space. In both cases, there is a distortion towards leisure and away from consumption/work. The unionised economy is dynamically efficient, in the sense that the marginal product of labour equals discount rate. However, the monopolistic economy is not: the marginal product of capital exceeds the discount rate. This enables us to compare the outcome sin terms of productivity, utility and employment.
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Bibliographic InfoPaper provided by Department of Economics, University of York in its series Discussion Papers with number 00/20.
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dynamic; monopolistic; unionised; Ramsey.;
Other versions of this item:
- Huw David Dixon, 2000. "Modelling Market Power in Labour and Product Markets in a Dynamic Economy," Ekonomia, Cyprus Economic Society and University of Cyprus, vol. 4(2), pages 104-121, Winter.
- E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
- H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
- J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-04-17 (All new papers)
- NEP-DGE-2000-04-17 (Dynamic General Equilibrium)
- NEP-IND-2000-04-17 (Industrial Organization)
- NEP-MIC-2000-04-17 (Microeconomics)
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.:
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