Involuntary Unemployment and Income Feedback Effects

Laurence Lasselle and Serge Svizzero ()
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Serge Svizzero: CERESUR - Centre d'Etudes et de Recherches Economique et Sociales de l'Université de La Réunion - UR - Université de La Réunion

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Abstract: We study the link between involuntary unemployment and income feedback effects in a model with an imperfect product market. We provide a condition based on the demand such that full employment prevails when income feedback effects are neglected, while involuntary unemployment appears when they are integrated.

Date: 1998-11
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Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-02167642

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