A Decentralized Ramsey Growth Model with a Monopoly Union

Lars Haagen Pedersen and Peter Stephensen
Additional contact information
Lars Haagen Pedersen: Institute of Economics, University of Copenhagen
Peter Stephensen: Institute of Economics, University of Copenhagen

No 91-06, Discussion Papers from University of Copenhagen. Department of Economics

Abstract: The behavior of a monopoly union in a model with optimizing agents and growing endogenous capital stock is analyzed. It is shown that the stationary state of the economy is the walrasian stationary state. Thus any unemployment is temporary. Further it is shown that unemployment may prevail initially depending on the distribution of non human wealth in the economy. If the stock of non human wealth in the economy. If the stock of non human wealth held by union members is sufficiently low, then there exists productin functions with elasticity of substitution between capital and labor less than one, for which the path which maximizes utility of union members exhibits unemployment.

Pages: 32 pages
Date: 1991-03
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:kud:kuiedp:9106

Access Statistics for this paper

More papers in Discussion Papers from University of Copenhagen. Department of Economics Oester Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Hoffmann ().