Unemployment and indeterminacy

• 成果类型: Article
• 署名作者: Nakajima, T
• 署名单位: Kyoto University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2004.08.003
• 发表日期: 2006
• 页码: 314-327
• 关键词: involuntary unemployment; efficiency wage; indeterminacy; sunspots

摘要

Using an efficiency-wage model, we examine the relationship between indeterminacy and unemployment insurance. It is shown that the less unemployment insurance is, the more likely equilibrium is to be indeterminate. Equilibrium can be indeterminate even without externalities or increasing returns, which makes a sharp contrast to the recent literature on indeterminacy. Our result is based on the fact that the no-shirking condition with marginal utility of wealth kept constant is downward sloping when income insurance is not perfect. (c) 2004 Elsevier Inc. All rights reserved.