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Real options, wage bargaining, factor subsidies and employment

Stein Østbye

Applied Economics, 1998, vol. 30, issue 3, 335-344

Abstract: The paper combines a translog variable cost function, a bargaining model of wage determination and a real option model determining real capital. Using this framework, the effect of factor subsidies on labour demand is estimated, based on aggregate panel data for Norwegian manufacturing industry in the period 1980-1988

Date: 1998
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DOI: 10.1080/000368498325859

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