Efficiency-wage hypothesis and the operational production pattern

Arbeitspapier

An economy's production set is the collection of all net output vectors that the economy is capable of producing with a given technology and fixed quantities of primary factors of production. The boundary of this set is called the production possibility frontier or PPF. We show that, if the efficiency-wage hypothesis holds, a country's PPF, though conceptually valid, is an operationally irrelevant concept, because the economy never operates on the PPF, which is a view that ought to be appreciated in light of persistent unemployment in the new structure of economies of the post-21st-Century-crisis world.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: MAGKS Joint Discussion Paper Series in Economics ; No. 46-2011

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Economic Education and Teaching of Economics: General ; General Equilibrium and Disequilibrium: General ; Macroeconomics: Production ; Neoclassical Models of Trade ; Labor Demand ; Wage Level and Structure; Wage Differentials
• Thema: general equilibrium ; production set ; production possibility frontier ; efficiency wage ; economic policy ; labor market ; Technische Effizienz ; Allgemeines Gleichgewicht ; Effizienzlohn ; Arbeitslosigkeit ; Wirtschaftspolitik ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Naqvi, Nadeem ; Schürg, Carolin V.
• Ereignis: Veröffentlichung
• (wer): Philipps-University Marburg, Faculty of Business Administration and Economics
• (wo): Marburg
• (wann): 2011

Weitere Informationen

• Handle: http://hdl.handle.net/10419/56538
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ