Natural rate of unemployment and efficiency: a dynamic analysis with flexible prices and increasing returns

We present a continous time non tatonnement process for frictionless and perfectly competitive markets with (possibly non convex) production, where the natural rate of unemployment (NRU) emerges as the asymptotic value of unemployment. Consumers and producers are myopic and repeatedly participate i...

Full description

Bibliographic Details
Main Authors: Giraud, G, Rochon, C
Format: Working paper
Published: University of Oxford 2008