Resource title

Dynamic effects of regulation and deregulation in goods and labour markets

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Resource description

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. (author's abstract) ; Series: Working Papers Series "Growth and Employment in Europe: Sustainability and Competitiveness"

Resource author

Pasquale Commendatore, Ingrid Kubin

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Resource publish date

Resource language

en

Resource content type

application/pdf

Resource resource URL

http://epub.wu.ac.at/496/1/document.pdf

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