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dc.contributor.authorKauppi, Heikkien_US
dc.contributor.authorKoskela, Erkkien_US
dc.contributor.authorStenbacka, Runeen_US
dc.date.accessioned2009-01-28T16:13:03Z-
dc.date.available2009-01-28T16:13:03Z-
dc.date.issued2004en_US
dc.identifier.urihttp://hdl.handle.net/10419/20293-
dc.description.abstractWe study the implications of product market competition and investment for price setting, wage bargaining and thereby for equilibrium unemployment in an economy with product and labour market imperfections. We show that intensified product market competition will reduce equilibrium unemployment, whereas the effect of increased capital intensity is more complex. Higher capital intensity will decrease the equilibrium unemployment when the elasticity of substitution between capital and labour is less than one, while the reverse happens when this elasticity is higher than one but smaller than the elasticity of substitution between products. Finally, we demonstrate how labour and product market imperfections, characterized by the wage and price setting mark-ups, affect the optimal capital stock. Our findings raise important questions for future empirical research.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesIZA Discussion paper series 1058en_US
dc.subject.jelE22en_US
dc.subject.jelJ51en_US
dc.subject.jelE24en_US
dc.subject.jelL11en_US
dc.subject.ddc330en_US
dc.subject.keywordequilibrium unemploymenten_US
dc.subject.keywordproduct market imperfectionsen_US
dc.subject.keywordinvestmenten_US
dc.subject.keywordwage bargainingen_US
dc.subject.stwArbeitslosigkeiten_US
dc.subject.stwArbeitsmarkttheorieen_US
dc.subject.stwUnvollkommener Markten_US
dc.subject.stwWettbewerben_US
dc.subject.stwInvestitionen_US
dc.subject.stwLohnverhandlungstheorieen_US
dc.subject.stwKapitalintensitäten_US
dc.subject.stwTheorieen_US
dc.titleEquilibrium Unemployment and Investment Under Product and Labour Market Imperfectionsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn38095074Xen_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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