The impossibility of involuntary unemployment in an overlapping generations model with rational expectation
Research output: Contribution to journal › Journal article › Research › peer-review
If there is unemployment no matter how low the wage rate becomes, one speaks of involuntary unemployment. This phenomenon has been shown to arise in a variety of temporary or atemporal macro models with imperfect competition in the goods markets. In this paper we investigate whether the phenomenon of involuntary unemployment arises in a Hartian overlapping generations model with rational expectations. It does not, neither in the short nor in the long run
Original language | English |
---|---|
Journal | Journal of Economic Theory |
Volume | 58 |
Issue number | 1 |
Pages (from-to) | 61-76 |
ISSN | 0022-0531 |
DOIs | |
Publication status | Published - 1992 |
ID: 157727