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Will the natural rate 0f unemployment be lower in the share economy described by Martin Weitzman than in a wage economy? We examine this question for a search economy with an equilibrium unemployment rate, a version 0f Salop's (1979) quits model. Equilibrium unemployment is the same in both economies. We also examine firms' short-run adjustment to shocks. Share-economy firms adjust output less than wage-economy firms for both demand shocks and labor-supply shocks. Depending on whether rapid output adjustment is stabilizing, a share economy may be more or less stable than a wage economy.

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Caltech Authors  

Autor(es)

Koford, Kenneth J. -  Miller, Jeffrey B. - 

Id.: 70083335

Versión: 1.0

Estado: Final

Tipo:  application/pdf - 

Tipo de recurso: Report or Paper  -  PeerReviewed  - 

Tipo de Interactividad: Expositivo

Nivel de Interactividad: muy bajo

Audiencia: Estudiante  -  Profesor  -  Autor  - 

Estructura: Atomic

Coste: no

Copyright: sí

Formatos:  application/pdf - 

Requerimientos técnicos:  Browser: Any - 

Relación: [References] http://resolver.caltech.edu/CaltechAUTHORS:20170911-153623191
[References] http://authors.library.caltech.edu/81326/

Fecha de contribución: 12-sep-2017

Contacto:

Localización:
* Koford, Kenneth J. and Miller, Jeffrey B. (1987) The Natural Rate in a Share Economy. Social Science Working Paper, 631. California Institute of Technology , Pasadena, CA. (Unpublished) http://resolver.caltech.edu/CaltechAUTHORS:20170911-153623191

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