Macroeconomic policy in a large unionized economy

Dixon, Huw David ORCID: https://orcid.org/0000-0002-9875-8965 1991. Macroeconomic policy in a large unionized economy. European Economic Review 35 (7) , pp. 1427-1448.

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Abstract

This paper models an economy with many sectors. In each sector a monopoly union sets the nominal wage, and then firms choose output. The economy is large in that all agents treat the general price level as fixed. The paper focusses on policy effects on employment. An increase in government expenditure in one sector will increase (decrease) total employment as sectoral employment is above (below) average. A general increase in government expenditure in fixed proportions will have a positive employment multiplier below unity. Policy which increases employment will lead to higher welfare.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Subjects:	H Social Sciences > HB Economic Theory
ISSN:	1427-1488
Last Modified:	24 Oct 2022 11:01
URI:	https://orca.cardiff.ac.uk/id/eprint/46678

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