No CrossRef data available.
Published online by Cambridge University Press: 17 August 2016
In a series of papers (Ginsburgh and Erlich (1984), Ginsburgh and Van der Heyden (1985), Erlich, Ginsburgh and Van der Heyden (1985)), we have tried to assess by how much the real wage should be or should have been decreased in order to ensure short and/or long run full employment.
This short note describes the main ideas lying behind the general equilibrium model built to answer these questions and summarizes the main results.
The model attempts to embed a situation of short run market imperfections into a long run competitive equilibrium framework. If price rigidities and a lack of substitution between factors are acceptable assumptions in the short run, there do exist no better concepts than flexible prices, substitution possibilities and equilibrium in all markets in the long run.
To send this article to your Kindle, first ensure no-reply@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about sending to your Kindle. Find out more about saving to your Kindle.
Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.
Find out more about the Kindle Personal Document Service.
To save this article to your Dropbox account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you used this feature, you will be asked to authorise Cambridge Core to connect with your Dropbox account. Find out more about saving content to Dropbox.
To save this article to your Google Drive account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you used this feature, you will be asked to authorise Cambridge Core to connect with your Google Drive account. Find out more about saving content to Google Drive.