The Capital Stock and Equilibrium Unemployment: A New Theoretical Perspective.
By assuming Cobb-Douglas production technology, many well-known imperfectly competitive macroeconomic models of the labour market (e.g. Layard, Nickell and Jackman, 1991) imply that equilibrium unemployment is independent of the capital stock. This paper introduces a new notion of capacity into the...
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| Format: | Working paper |
| Language: | English |
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Department of Economics (University of Oxford)
2005
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