The Hahn-Solow macro model

The Hahn-Solow macromodel is characterized by fixed nominal wages, increasing returns on capital and pricesetting under an imperfect competitive environment. It proposes that a fall in unemployment is always accompanied by a rise in real wages. The two authors demonstrate that involuntary unemployment is compatible with equilibrium in the goods- and labormarket but they can hardly explain the macroeconomic records of the recent three decades in the US and in Europe.

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Year of publication:	1999-05-03
Authors:	Frisch, Helmut
Published in:	Journal of Evolutionary Economics. - Springer. - Vol. 9.1999, 2, p. 265-270
Publisher:	Springer
Subject:	Involuntary unemployment \| Increasing returns on capital \| Rubinstein game \| Fair equilibrium \| Monetary policy

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005169480