Gersbach, Hans; Schniewind, Achim - Institute for the Study of Labor (IZA) - 2001
account but learn a steady state. If agents do hardly consider general equilibrium effects, low real wages and low … unemployment results. With an intermediate view, when partial equilibrium effects are taken into account, high real wages and … incorporated at once, again low real wages and low unemployment results. We thus obtain a hump-shaped relationship between the …