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Involuntary Unemployment and the Existence of GDP Functions

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  • Max Albert
  • Jürgen Meckl

Abstract

We develop a simple general equilibrium model of production where, despite the existence of involuntary unemployment, non–equalized job rents are the only distortion. Hence, a standard GDP function exists. Unemployment results from either efficiency wage setting or wage bargaining.

Suggested Citation

  • Max Albert & Jürgen Meckl, 2003. "Involuntary Unemployment and the Existence of GDP Functions," Metroeconomica, Wiley Blackwell, vol. 54(1), pages 79-88, February.
    • Handle: RePEc:bla:metroe:v:54:y:2003:i:1:p:79-88
    DOI: 10.1111/1467-999X.00160
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    References listed on IDEAS

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    1. James Harrigan & Rita Balaban, 1999. "U.S. Wages in General Equilibrium: The Effects of Prices, Technology, and Factor Supplies, 1963-1991," NBER Working Papers 6981, National Bureau of Economic Research, Inc.
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    5. Albert, Max & Meckl, Jürgen, 1997. "Efficiency wages, unemployment and welfare: A trade theorists' guide," Discussion Papers, Series II 348, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    6. James Harrigan & Egon Zakrajsek, 2000. "Factor Supplies and Specialization in the World Economy," NBER Working Papers 7848, National Bureau of Economic Research, Inc.
    7. Harrigan, James, 1997. "Technology, Factor Supplies, and International Specialization: Estimating the Neoclassical Model," American Economic Review, American Economic Association, vol. 87(4), pages 475-494, September.
    8. Hoon, Hian Teck, 1991. "Comparative advantage and the equilibrium rate of unemployment," Economics Letters, Elsevier, vol. 37(3), pages 299-304, November.
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    11. repec:bla:econom:v:62:y:1995:i:247:p:335-51 is not listed on IDEAS
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    Cited by:

    1. Gilbert L. Skillman, 2022. "The Nash bargaining solution in labor market analysis," Metroeconomica, Wiley Blackwell, vol. 73(3), pages 884-899, July.

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