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Involuntary Unemployment and the Existence of GDP Functions

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  • Max Albert
  • Jürgen Meckl

Abstract

We develop a simple general equilibrium model of production where, despite the existence of involuntary unemployment, non–equalized job rents are the only distortion. Hence, a standard GDP function exists. Unemployment results from either efficiency wage setting or wage bargaining.

Suggested Citation

  • Max Albert & Jürgen Meckl, 2003. "Involuntary Unemployment and the Existence of GDP Functions," Metroeconomica, Wiley Blackwell, vol. 54(1), pages 79-88, February.
  • Handle: RePEc:bla:metroe:v:54:y:2003:i:1:p:79-88
    DOI: 10.1111/1467-999X.00160
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    References listed on IDEAS

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    8. Albert, Max & Meckl, Jürgen, 1997. "Efficiency wages, unemployment and welfare: A trade theorists' guide," Discussion Papers, Series II 348, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    9. Hoon, Hian Teck, 1991. "Comparative advantage and the equilibrium rate of unemployment," Economics Letters, Elsevier, vol. 37(3), pages 299-304, November.
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    Cited by:

    1. Gilbert L. Skillman, 2020. "The Nash Bargaining Solution in Labor Market Analysis," Wesleyan Economics Working Papers 2020-005, Wesleyan University, Department of Economics.

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