A welfare economics foundation for the full-employment policy

Masayuki Otaki

Economics Letters, 2009, vol. 102, issue 1, 1-3

Abstract: Combining the dynamic Keynesian cross (Otaki, M., 2007. The dynamically extended Keynesian cross and the welfare-improving fiscal policy. Economics Letters 96, 23-29.) with modified efficient wage bargaining, based on McDonald and Solow (McDonald, I.M. and Solow, R.M. 1981. Wage bargaining and employment. American Economic Review 71, 896-908.), we have succeeded in showing a kind of involuntary unemployment as an equilibrium outcome.

Keywords: Dynamic; Keynesian; cross; Efficient; wage; bargaining; Involuntary; unemployment (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (39)

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