Underemployment and capital accumulation in a decentralized economy. A dynamic general equilibrium perspective
FP4 — Training and Mobility of Researchers
- Duration
- 1996-06-28 → 1997-06-27
- EU contribution
- —
- Participants
- 2
- Scheme
- RGI
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Project objective
Most macroeconomic models which analyse the unemployment problem put forward the need for increasing wage flexibility and labour mobility. Up to now these models neglect the presence of quantity constraints such as supply constraints. It is however not obvious that increasing labour market flexibility creates ipso facto the work-stations that will allow firms to employ more workers. The research project aims at contributing to a better understanding of -the determinants of the accumulation of production capacities (and thus of the creation of work-stations) -and of the determinants of the utilisation rate of existing capacities. We want to construct dynamic general equilibrium models where the presence of quantity constraints (such as capacity constraints) is taken into account explicitly. We will then analyse the interactions between the accumulation and the utilisation of production capacities the employment level and the working of the labour market.
Original text from CORDIS.
Participants
Links
Data: CORDIS, © European Union