Note on the optimality of unemployment equilibria

DOI10.1016/0304-4068(83)90012-5MaRDI QIDQ793632zbMATH OpenOpenAlexFDO

Authors Gerard van der Laan

Publication date 1983

Published in Journal of Mathematical Economics (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1016/0304-4068(83)90012-5

zbMATH Keywords

economy with rigid pricesPareto optimalityrationingunemployment equilibria

Mathematics Subject Classification ID

General equilibrium theory (91B50)

Review text

It is shown that in an economy with rigid prices there is a set of unemployment equilibria, i.e. equilibria for which the quantity rationing affects the supplies only. Then it is shown that under certain conditions each equilibrium in which there is rationing on all markets is dominated by an equilibrium in which at least one commodity is not rationed. On the other hand, if the conditions are not satisfied it may be possible that there exists an undominated equilibrium with rationing on all markets.

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Cites work

• Equilibrium under Rigid Prices with Compensation for the Consumers
• Existence of an Exchange Equilibrium under Price Rigidities
• scientific article; zbMATH DE number 3728015 (Why is no real title available?)
• Simplicial approximation of unemployment equilibria
• Two Remarks on the Number of Equilibria of an Economy
• Unemployment equilibrium in an economy with linked prices

Cited in

(11)

• Dynamic equilibria with unemployment due to undernourishment
• Continua of underemployment equilibria reflecting coordination failures, also at Walrasian prices
• Unemployment equilibrium in a random economy
• The Mortensen rule and efficient coordination unemployment
• Bounded rationality and unemployment dynamics
• Nominal rigidities equilibria in a non-Ricardian economy
• Wage rigidities, unemployment compensations and Pareto optimality
• scientific article; zbMATH DE number 50345 (Why is no real title available?)
• A Disequilibrium Rational Expectations Model with Walrasian Prices and Involuntary Unemployment
• scientific article; zbMATH DE number 1210332 (Why is no real title available?)
• scientific article; zbMATH DE number 4185351 (Why is no real title available?)

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