A macro model with trade unions

Anup Shah

Journal of Macroeconomics, 1985, vol. 7, issue 2, 175-194

Abstract: The model features the usual IS and LM curves and a dynamic equation for changes in the government's budget deficit. The price level is assumed to be prefectly flexible so that the goods market always clears, whereas trade unions play an important role in wage determination. Two union models are considered, the monopoly union and the efficient bargain model. With such explicit recognition of union behavior, the way conventional policies operate is changed with differing outcome. Since there is full price flexibility and the goverment deficit disappears, the effectiveness of reflationary policies is not subject to the usual criticisms.

Date: 1985
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0164-0704(85)80003-3
Full text for ScienceDirect subscribers only

Related works:
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:jmacro:v:7:y:1985:i:2:p:175-194

Access Statistics for this article

Journal of Macroeconomics is currently edited by Douglas McMillin and Theodore Palivos

More articles in Journal of Macroeconomics from Elsevier
Bibliographic data for series maintained by Catherine Liu (repec@elsevier.com).