IDEAS home Printed from https://ideas.repec.org/a/phs/prejrn/v25y1988i3&4p243-253.html
   My bibliography  Save this article

Price Decisions and Employment Equilibrium

Author

Listed:
  • Jose Encarnacion Jr.

    (University of the Philippines)

Abstract

Instead of expected profit maximization, this‘ paper assumes a safety-first objective so that the firm will set a higher price for its product if cost or demand is higher, which has macroeconomic implications, With all firms in the economy as price setters, there is an equilibrium of prices which entails an employment equilibrium, and vice versa. The model developed can account for increasing unemployment with in?ation, and allows for procyclical real wages.

Suggested Citation

  • Jose Encarnacion Jr., 1988. "Price Decisions and Employment Equilibrium," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 25(3&4), pages 243-253, September.
  • Handle: RePEc:phs:prejrn:v:25:y:1988:i:3&4:p:243-253
    as

    Download full text from publisher

    File URL: http://pre.econ.upd.edu.ph/index.php/pre/article/download/292/413
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    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:phs:prejrn:v:25:y:1988:i:3&4:p:243-253. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: RT Campos (email available below). General contact details of provider: https://edirc.repec.org/data/seupdph.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.