Conditions for linearity of the wage curve

Christian Bidard

Metroeconomica, 2020, vol. 71, issue 2, 449-455

Abstract: For a given technique, the wage‐rate of profit curve is linear in one‐sector models. In multisector models, Wicksell effects appear and some paradoxes in capital theory are linked to the complex shape of the wage curve. We study the conditions ensuring the linearity of the curve for a bisector model and for models satisfying a specific rank condition.

Date: 2020
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