Union-Firm Bargaining, Investment and Equilibrium Unemployment

David de la Croix

No 1992020, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: A dynamic bargaining model with endogenous prices, wages and investment is presented. It accounts for capital and labour underutilization at steady state and displays various patterns of unemployment rate and capacity utilization rate comovements as a function of demand and supply shocks. The aim determining elements of unemployment are the unit cost of capital, the intensity of competition in the product market, the magnitude of uncertainty and union characteristics.

Keywords: unemployment; economic models; investments (search for similar items in EconPapers)
Pages: 23
Date: 1992-10-01
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvir:1992020

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