Dynamic Effects of Regulation and Deregulation in Goods and Labour Markets

Pasquale Commendatore and Ingrid Kubin ()

Working Papers from Vienna University of Economics and Business Research Group: Growth and Employment in Europe: Sustainability and Competitiveness

Abstract: Modern macroeconomic models with a Keynesian flavour usually involve nominal rigidities in wages and goods prices. A typical model is static and combines wage bargaining in the labour markets and monopolistic competition in the goods markets. As central policy implication it follows that deregulating labour and/or goods markets increases equilibrium employment. We reassess the consequences of deregulation in a dynamic model. It still increases employment at the fixed point, which corresponds to the static equilibrium solution. However, deregulation may also lead to stability loss and endogenous fluctuations.

Keywords: Labour and goods markets deregulation; monopolistic competition; business cycles (search for similar items in EconPapers)
JEL-codes: E1 (search for similar items in EconPapers)
Date: 2005-05
New Economics Papers: this item is included in nep-mac and nep-reg
Note: PDF Document
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.wu-wien.ac.at/inst/vw1/gee/papers/geewp49.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.wu-wien.ac.at/inst/vw1/gee/papers/geewp49.pdf [301 Moved Permanently]--> https://www.wu.ac.at/inst/vw1/gee/papers/geewp49.pdf)

Related works:
Journal Article: Dynamic effects of regulation and deregulation in goods and labour markets (2009)
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:wiw:wiwgee:geewp49

Access Statistics for this paper

More papers in Working Papers from Vienna University of Economics and Business Research Group: Growth and Employment in Europe: Sustainability and Competitiveness Welthandelsplatz 1, 1020 Vienna, Austria.
Bibliographic data for series maintained by Department of Economics ().