Philipps-Universität Marburg >
Faculty of Business Administration and Economics, Philipps-Universität Marburg >
MAGKS Joint Discussion Paper Series in Economics, Universität Marburg >
Please use this identifier to cite or link to this item:
| || |
|Title:||Efficiency-wage hypothesis and the operational production pattern |
Schürg, Carolin V.
|Issue Date:||2011 |
|Series/Report no.:||Joint discussion paper series in economics 46-2011|
|Abstract:||An economy's production set is the collection of all net output vectors that the economy is capable of producing with a given technology and fixed quantities of primary factors of production. The boundary of this set is called the production possibility frontier or PPF. We show that, if the efficiency-wage hypothesis holds, a country's PPF, though conceptually valid, is an operationally irrelevant concept, because the economy never operates on the PPF, which is a view that ought to be appreciated in light of persistent unemployment in the new structure of economies of the post-21st-Century-crisis world.|
production possibility frontier
|Document Type:||Working Paper|
|Appears in Collections:||MAGKS Joint Discussion Paper Series in Economics, Universität Marburg|
Download bibliographical data as:
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.