Arbeitspapier

Capital Accumulation and Employment Cycles in a Model of Creative Destruction

A Schumpeterian growth model is constructed for an economy with wage bargaining. It is shown that the economy is subject to cycles in which capital, output and employment vary in fixed proportion. These increase through saving and capital accumulation until a new technology is introduced, at which moment they fall sharply due to obsolescence of capital. When the labour market is deregulated to weaken workers' position in bargaining, the labour-capital ratio increases but the average growth rate of the economy decreases. The growth cycle can be socially optimal. An elasticity rule is given for when the labour market should be regulated and when deregulated.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 855

Klassifikation
Wirtschaft
Thema
growth
cycles
labour unions
creative destruction

Ereignis
Geistige Schöpfung
(wer)
Palokangas, Tapio
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2003

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Palokangas, Tapio
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2003

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