Kauppi, Heikki; Koskela, Erkki; Stenbacka, Rune - CESifo - 2004
We study the implications of product and labor market imperfections for equilibrium unemployment under both exogenous … and endogenous capital intensity. With endogenous capital intensity, stronger labor market imperfections always increase … long-run equilibrium unemployment is an increasing function of product market imperfections when the elasticity exceeds …