IS CORPORATISM FEASIBLE?

Nicola Acocella and Giovanni Di Bartolomeo ()

Metroeconomica, 2007, vol. 58, issue 2, pages 340-359

Abstract: This paper investigates the effects of cooperation (corporatism) on macroeconomic performance by considering a rather standard policy game between the government and a monopoly union. We stress the shortcomings of the traditional way used to model cooperation in policy games (the maximization of the weighted sum of players' preferences), which only approximates the Nash product solution. We find that it is difficult to implement corporatism, although it generally increases social welfare, as it often reduces the union's utility. In particular, we show that an inflation-neutral union will never find it profitable to cooperate with the government, unless side-payments are considered. The study of this issue, however, is beyond the scope of this paper. Copyright © 2007 The Authors; Journal compilation © 2007 Blackwell Publishing Ltd.

Date: 2007
View citations in EconPapers

Downloads: (external link)
http://www.blackwell-synergy.com/servlet/useragent ... &year=2007&part=null link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Is corporatism feasible? (2003)
Working Paper: Is corporatism feasible? (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bla:metroe:v:58:y:2007:i:2:p:340-359

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0026-1386

Access Statistics for this article

Metroeconomica is edited by Heinz D. Kurz and Neri Salvadori

More articles in Metroeconomica from Blackwell Publishing
Series data maintained by Christopher F. Baum ().