IDEAS home Printed from
   My bibliography  Save this article

Wage Determination and Capital Decisions in a Dynamic Monopoly Union Model


  • Saqib Jafarey

    (University of Essex, U.K.)

  • Yannis Kaskarelis

    (University of Macadonia, Greece)

  • Natasha Miaouli

    (Athens University of Economics and Business, Greece)


This paper uses a dynamic monopoly union model to analyse the joint determination of wages, employment and investment in the absence of binding contracts. The union maximizes a utilitarian utility function while the firm faces a neoclassical investment problem with adjustment costs. Concentrating on noncommitment equilibria, we solve for Markov strategies. When the model is tested for Greek manufacturing during the period 1954-1993, the data do not reject the theoretical predictions.

Suggested Citation

  • Saqib Jafarey & Yannis Kaskarelis & Natasha Miaouli, 1998. "Wage Determination and Capital Decisions in a Dynamic Monopoly Union Model," Ekonomia, Cyprus Economic Society and University of Cyprus, vol. 2(1), pages 73-89, Summer.
  • Handle: RePEc:ekn:ekonom:v:2:y:1998:i:1:p:73-89

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    JEL classification:

    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ekn:ekonom:v:2:y:1998:i:1:p:73-89. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Managing Editor). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.