English, Article, Journal or magazine article edition: Demand-Supply Interactions and Unemployment Dynamics: Can there be Path Dependency ? The Case of Belgium, 1955-1994 Shadman-Mehta, Fatemeh; Sneessens, Henri R.

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/4175
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Demand-Supply Interactions and Unemployment Dynamics: Can there be Path Dependency ? The Case of Belgium, 1955-1994
Author
  • Shadman-Mehta, Fatemeh
  • Sneessens, Henri R.
Physical Description
  • preprint
Notes
  • The proportion of capacity-constrained firms in European economies remains today fairly small, which suggests that capacity shortages cannot be the direct and single cause of unemployment persistence. Inferring from this observation that low investment rates play no role in explaining the persistence of high unemployment rates may however fail to take into account the relationship between demand expectations, capital accumulation and real rigidities. The objective of this paper, is to show how a continuum of excess-supply equilibria can be obtained, in models with real rigidities, similar to those traditionally used to analyse the determinants of equilibrium unemployment (the NAIRU), provided one takes explicitly into account the effect of a ``capital gap" on wage formation, and the relationship between capital accumulation and demand expectations. Such a persistence mechanism might contribute to explain why current unemployment rates seem to depend so much on past history, and why there is no simple explanation that applies equally well to all European countries. The results obtained from an empirical analysis of Belgian post-war data are compatible with such a scenario.
  • Equilibrium unemployment; NAIRU; capital shortage; hysteresis; cointegration
  • RePEc:ctl:louvir:1998017
Language
  • English
Contributed by
OAIster

Get this edition

Other links

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment