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Fixed point 2 Increasing function 2 Theorie 2 arrangement increasing function 2 majorization 2 optimal allocations 2 stochastic arrangement increasing 2 stochastic orders 2 AD type with government activity. Wages and aggregate employment levels are set according to an efficient (Nash) bargaining agreement while the commodity market is cleared in a competitive way. It is shown that, for each level of union power, measured by the share it obtains of the total production surplus, efficient bargaining implies no efficiency loss in production. Depending on the level of union power, temporary equilibria may exhibit voluntary overemployment or underemployment with the competitive equilibrium being a special case. Due to the price feedback from the commodity market and to income-induced demand effects, all temporary equilibria with a positive labor share are not Nash bargaining-efficient with respect to the set of feasible temporary equilibrium allocations. While higher union power induces a larger share of the surplus and a higher real wage, it always implies lower output and employment. Moreover, the induced nominal equilibrium wage is not always a monotonically increasing function of union power. Therefore, all temporary equilibria with efficient bargaining are only Second-best Pareto optimal, i.\,e.\ bargaining power and production efficiency do not lead to temporary optimality. The dynamic evolution of money balances, prices, and wages is analyzed being driven primarily by government budget deficits and expectations by consumers. It is shown that for each fixed level of union power, the features of the dynamics under perfect foresight are structurally identical to those of the same economy under competitive wage and price setting. These are: stationary equilibria with perfect foresight do not exist, except on a set of parameters of measure zero 1 Allocation 1 Allokation 1 Beschäftigung 1 Dynamisches Modell 1 Gewerkschaftsmitgliedschaft 1 Lohnverhandlungen 1 Makroökonomik 1 Mathematical programming 1 Mathematische Optimierung 1 Spieltheorie 1 Stochastic process 1 Stochastischer Prozess 1 Theory 1 Verhandlungsmacht 1 Wirtschaftliche Effizienz 1 balanced paths of monetary expansion or contraction are the only possibilities inducing constant allocations 1 for small levels of government demand, there exist two balanced paths generically, one of which with high employment and production is always unstable, while the other one may be stable or unstable. 1
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Online availability
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Free 5
Type of publication
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Book / Working Paper 3 Article 2
Type of publication (narrower categories)
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Working Paper 2 Article 1 Article in journal 1 Aufsatz in Zeitschrift 1
Language
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English 5
Author
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Persson, Håkan 2 Wei, Wei 2 Böhm, Volker 1 Claas, Oliver 1
Institution
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Handelshögskolan, Örebro Universitet 1
Published in...
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Risks 1 Risks : open access journal 1 Working Paper 1 Working Papers 1 Working Papers / Handelshögskolan, Örebro Universitet 1
Source
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EconStor 3 ECONIS (ZBW) 1 RePEc 1
Showing 1 - 5 of 5
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Properties of stochastic arrangement increasing and their applications in allocation problems
Wei, Wei - In: Risks 6 (2018) 2, pp. 1-12
There are extensive studies on the allocation problems in the field of insurance and finance. We observe that these studies, although involving different methodologies, share some inherent commonalities. In this paper, we develop a new framework for these studies with the tool of arrangement...
Persistent link: https://www.econbiz.de/10011996607
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Cover Image
Properties of stochastic arrangement increasing and their applications in allocation problems
Wei, Wei - In: Risks : open access journal 6 (2018) 2, pp. 1-12
There are extensive studies on the allocation problems in the field of insurance and finance. We observe that these studies, although involving different methodologies, share some inherent commonalities. In this paper, we develop a new framework for these studies with the tool of arrangement...
Persistent link: https://www.econbiz.de/10011866516
Saved in:
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Efficient wage bargaining in a dynamic macroeconomic model
Böhm, Volker; Claas, Oliver - 2012
This paper analyzes the implications of bilateral bargaining over wages and employment between a producer and a union representing a finite number of identical workers in a monetary macroeconomic model of the AS
Persistent link: https://www.econbiz.de/10010319989
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A Fixed Point Theorem for Monotone Functions equivalent to Browers theorem
Persson, Håkan - 2005
A Fixed Point Theorem for Monotone Functions equivalent to Browers theorem
Persistent link: https://www.econbiz.de/10012654309
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A Fixed Point Theorem for Monotone Functions equivalent to Browers theorem
Persson, Håkan - Handelshögskolan, Örebro Universitet - 2005
A Fixed Point Theorem for Monotone Functions equivalent to Browers theorem
Persistent link: https://www.econbiz.de/10005190528
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