Returns to labour and chaotic cycles of wage and employment

Luciano Fanti

Discussion Papers from Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy

Abstract: This paper discusses the dynamics of a standard (double Cobb-Douglas) labour market under the circumstance of changes in returns to labour. Despite the simplicity as well as the vast diffusion of this model, such an issue has so far escaped closer scrutiny by economic dynamics literature. This investigation shows: i) possible chaotic behaviours in a simple walrasian market, ii) the multiple roles that returns to labour play on the stability, and iii) the corresponding implications for stabilization policy.

Keywords: chaos; walrasian labour market; returns to labor. (search for similar items in EconPapers)
JEL-codes: E3 J0 (search for similar items in EconPapers)
Date: 2012-09-01
New Economics Papers: this item is included in nep-lab and nep-mac
Note: ISSN 2039-1854
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pie:dsedps:2012/150

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