The impossibility of involuntary unemployment in an overlapping generations model with rational expectation

Publikation: Bidrag til tidsskriftTidsskriftartikelfagfællebedømt

If there is unemployment no matter how low the wage rate becomes, one speaks of involuntary unemployment. This phenomenon has been shown to arise in a variety of temporary or atemporal macro models with imperfect competition in the goods markets. In this paper we investigate whether the phenomenon of involuntary unemployment arises in a Hartian overlapping generations model with rational expectations. It does not, neither in the short nor in the long run
OriginalsprogEngelsk
TidsskriftJournal of Economic Theory
Vol/bind58
Udgave nummer1
Sider (fra-til)61-76
ISSN0022-0531
DOI
StatusUdgivet - 1992

ID: 157727