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Le modèle WS-PS et le chômage d'équilibre

Author

Listed:
  • Antoine d'Autume

    (EUREQUA - Equipe Universitaire de Recherche en Economie Quantitative - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

The now standard WS- PS (wage-setting, price-setting) introduced by Layard-Nickell-Jackman(1991) and recently developped by Cahuc-Zylberberg(1999), provides simple foundations to the equilibrium unemployment rate. We provide a complete exposition of the model. We stress the importance of assumptions about utility and production functions, on one hand, and the indexation of unemployment subsidies, on the other hand. Depending on these assumptions, the WS curve may have a finite or infinite elasticity, a fact which dramatically alters the properties of the equilibrium unemployment rate. In particular this rate may or may not depend on the interest rate. We also clarify the dynamics of the model. Lastly, we show how this type of framework may be extended to the case where two types of workers coexist.

Suggested Citation

  • Antoine d'Autume, 2001. "Le modèle WS-PS et le chômage d'équilibre," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00452567, HAL.
    • Handle: RePEc:hal:cesptp:halshs-00452567
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00452567
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