Accéder directement au contenu Accéder directement à la navigation
Pré-publication, Document de travail

A steady-state model of a non-walrasian economy with three imperfect markets

Abstract : Unemployment may depend on equilibrium in other markets than the labor markets. This paper adresses this old idea by introducing search frictions on several markets: in a model of credit and labor market imperfections as in Wasmer and Weil (2004), I further introduce search on the goods market. The model can be solved by blocks: on two of the three markets, the relevant "market tightness" is a constant of parameters. In particular, goods market tightness, expressed as the ratio of unmatched consumers to unmatched firms, is equal to 1 which corresponds to a stochastic Say's law: demand and supply are stochastically in equilibrium. Financial market tightness is also a function of three parameters related to financial frictions. Job creation and employment depend on the equilibrium in the other markets. Reciprocally, higher job destruction implies more volatility of income of individual consumers and higher destruction of consumption matches. This lowers profits and further reduces job creation. Finally, there are complementarities between frictions in each market: in particular, the marginal effect of financial frictions on equilibrium unemployment is amplified by goods market frictions and vice versa.
Type de document :
Pré-publication, Document de travail
Liste complète des métadonnées

Littérature citée [29 références]  Voir  Masquer  Télécharger

https://hal-sciencespo.archives-ouvertes.fr/hal-00972914
Contributeur : Spire Sciences Po Institutional Repository <>
Soumis le : jeudi 3 avril 2014 - 20:09:01
Dernière modification le : mardi 18 juin 2019 - 01:11:28
Archivage à long terme le : : jeudi 3 juillet 2014 - 19:51:12

Fichier

wasmernequal3-3june2011.pdf
Fichiers produits par l'(les) auteur(s)

Identifiants

Collections

Citation

Etienne Wasmer. A steady-state model of a non-walrasian economy with three imperfect markets. 2011. ⟨hal-00972914⟩

Partager

Métriques

Consultations de la notice

218

Téléchargements de fichiers

82