Citanna, Alessandro; Cres, Herve; Dreze, Jacques; … - Maastricht : METEOR, Maastricht Research School of … - 2001
In this paper the existence of unemployment is partly explained as being the result of coordination failures. It is shown that as a result of self-fulfilling pessimistic expectations, even at Walrasian prices, a continuum of equilibria results, among which an equilibrium with approximately no...
