EconPapers    
Economics at your fingertips  
 

Unemployment equilibrium and economic policy in mixed markets

Ludovic Julien

Economic Modelling, 2011, vol. 28, issue 4, 1931-1940

Abstract: This paper features a simple static Cournot-Nash model of an exchange economy with two productive sectors at flexible prices and wages. The traders in the atomless sector are price-takers, while the atoms behave strategically. We focus on the consequences of strategic interactions on the market outcome. Firstly, strategic interactions create underemployment on the labor market. Secondly, when the number of atoms increases without limit, the CWE coincides with the competitive equilibrium. Thirdly, we compare the welfare reached by traders at both equilibria. Fourthly, we consider the implementation of a tax levied on strategic supplies. Finally, we compare the approach retained with the monopolistic competition framework.

Keywords: Strategic; interactions; Welfare; Tax (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999311000897
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Unemployment equilibrium and economic policy in mixed market (2011)
Working Paper: Unemployment equilibrium and economic policy in mixed markets (2009) Downloads
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: https://EconPapers.repec.org/RePEc:eee:ecmode:v:28:y:2011:i:4:p:1931-1940

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2020-02-26
Handle: RePEc:eee:ecmode:v:28:y:2011:i:4:p:1931-1940