A monopoly union model of wage determination with taxes and endogenous capital stock: an empirical application to the Finnish manufacturing industry

The paper formulates a model of wage determination in accordance with the notion of a monopoly union determining wages after which the firm decides on employment. The novelty is to incorporate investment and capital decisions by firms. In the theoretical part the subgame-perfect Nash equilibrium and its comparative statics for wages, capital stock and employment are characterized in various cases.

MoreLess

Year of publication:	1990
Authors:	Holm, Pasi ; Honkapohja, Seppo ; Koskela, Erkki
Publisher:	Helsinki : Bank of Finland

More details

Series:	Bank of Finland Discussion Papers ; 24/1990
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
ISBN:	951-686-266-7
Other identifiers:	hdl:10419/211599 [Handle] RePEc:zbw:bofrdp:rdp1990_024 [RePEc]
Source:	EconStor

Persistent link: https://www.econbiz.de/10012147530