A Stochastic Monopsony Theory of the Business Cycle.

Two distinct regimes, contractions and expansions, are generated in a model in which goods markets clear and all individuals are optimizing, strict wage and price takers, have fully rational expectations, and are heterogeneous in both preferences and resource endowments. Involuntary unemployment, as...

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Publicado en:Economic Inquiry Vol. 43; no. 1; pp. 206 - 220
Autores principales: Holmes, James M., Hutton, Patricia A.
Formato: Artículo
Publicado: Wiley-Blackwell January 2005
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: A Stochastic Monopsony Theory of the Business Cycle.
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          Holmes, James M.
          Hutton, Patricia A.
      su:
        Stochastic processes
        Monopsonies
        Mathematical models of economic competition
        Mathematical models of business cycles
      sug:
        subj:
          Stochastic processes
          Monopsonies
          Mathematical models of economic competition
          Mathematical models of business cycles
      ab: Two distinct regimes, contractions and expansions, are generated in a model in which goods markets clear and all individuals are optimizing, strict wage and price takers, have fully rational expectations, and are heterogeneous in both preferences and resource endowments. Involuntary unemployment, asymmetric monetary policy effectiveness, and a changing relationship between real wages and employment over the business cycle are the result of optimizing behavior by monopsonistic, wage-setting, and price-taking firms faced with price uncertainty, an upward-sloped supply of employees, and efficiency wage behavior. Disequilibrium and involuntary unemployment can occur at the level of the individual firm's labor market. (JEL E32, E52, J41, J42) Reprinted by permission of the publisher.
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    language: English
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