"EFFECTIVE DEMAND AND UNEMPLOYMENT"

The coordination of Froduction and consumption decisions is analysed in a static model where the interdependence between production, income and demand is explicitly modelled. With imperfect competition and non-convex production technologies it is shown that there exists a zero pure profit equilibrium with a positive level of employment and possible involuntary employment. Finally, it is shown how to arrange a form of external intervention so as to ensure full employment.


Issue Date:
Sep 09 1987
Publication Type:
Working or Discussion Paper
Record Identifier:
http://ageconsearch.umn.edu/record/268246
Language:
English
Total Pages:
19




 Record created 2018-02-13, last modified 2018-02-13

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