[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/wsi/serxxx/v68y2023i06ns0217590820500307.html
   My bibliography  Save this article

Indivisible Labor Supply And Involuntary Unemployment: Monopolistic Competition Model

Author

Listed:
  • YASUHITO TANAKA

    (Faculty of Economics, Doshisha University, Kamigyo-ku, Kyoto, 602-8580, Japan)

Abstract
This paper is an attempt to provide a micro-theoretical basis for Keynesian economics while maintaining as much of the neoclassical framework as possible, such as utility maximization for consumers and profit maximization for firms. We show the existence of involuntary unemployment without assuming wage rigidity when labor supplies of individuals are indivisible. We derive involuntary unemployment using an overlapping generations model under monopolistic competition with constant returns to scale technology and indivisible labor supply.

Suggested Citation

  • Yasuhito Tanaka, 2023. "Indivisible Labor Supply And Involuntary Unemployment: Monopolistic Competition Model," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 68(06), pages 1953-1966, December.
    • Handle: RePEc:wsi:serxxx:v:68:y:2023:i:06:n:s0217590820500307
    DOI: 10.1142/S0217590820500307
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0217590820500307
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0217590820500307?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Marc Lavoie, 2001. "Efficiency Wages in Kaleckian Models of Employment," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 23(3), pages 449-464, March.
    2. Masayuki Otaki, 2015. "Price Theory in a Monetary Economy," Advances in Japanese Business and Economics, in: Keynesian Economics and Price Theory, edition 127, chapter 2, pages 15-41, Springer.
    3. Otaki, Masayuki, 2009. "A welfare economics foundation for the full-employment policy," Economics Letters, Elsevier, vol. 102(1), pages 1-3, January.
    4. McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tanaka, Yasuhito, 2020. "Involuntary unemployment with divisible labor supply with a three-periods overlapping generations model under monopolistic competition," MPRA Paper 99354, University Library of Munich, Germany.
    2. Tanaka, Yasuhito, 2020. "非自発的失業の存在について：世代重複完全競争モデルを用いて [On the existence of involuntary unemployment: Overlapping generations perfect competition model]," MPRA Paper 98407, University Library of Munich, Germany.
    3. Yasuhito Tanaka, 2020. "Involuntary unemployment in overlapping generations model due to instability of the economy," Papers 2012.12199, arXiv.org.
    4. Tanaka, Yasuhito, 2021. "Involuntary unemployment in overlapping generations model due to instability of the economy and fiscal policy for full-employment," MPRA Paper 106214, University Library of Munich, Germany.
    5. Tanaka, Yasuhito, 2020. "Divisibility and indivisibility of labor supply, and involuntary unemployment: A monopolistic competition model with homothetic preferences," MPRA Paper 98406, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tanaka, Yasuhito, 2020. "Divisibility and indivisibility of labor supply, and involuntary unemployment: A perfect competition model," MPRA Paper 98405, University Library of Munich, Germany.
    2. Yasuhito Tanaka, 2020. "Involuntary unemployment in overlapping generations model due to instability of the economy," Papers 2012.12199, arXiv.org.
    3. Tanaka, Yasuhito, 2020. "Positive or negative real balance effects, involuntary unemployment, three-generations overlapping generations model," MPRA Paper 104333, University Library of Munich, Germany.
    4. Tanaka, Yasuhito, 2019. "Involuntary unemployment under indivisible labor supply: Perfect competition case," MPRA Paper 97832, University Library of Munich, Germany.
    5. Yasuhito Tanaka, 2022. "Involuntary Unemployment Due to Instability of the Economy and Fiscal Policy for Full-Employment," Research in Business and Management, Macrothink Institute, vol. 9(1), pages 1-20, December.
    6. Tanaka Yasuhito, 2020. "Involuntary Unemployment in a Neoclassical Model," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 65(2), pages 12-28, August.
    7. Tanaka, Yasuhito, 2021. "Involuntary unemployment in overlapping generations model due to instability of the economy and fiscal policy for full-employment," MPRA Paper 106214, University Library of Munich, Germany.
    8. Tanaka, Yasuhito, 2019. "Indivisible labor supply and involuntary unemployment: Increasing returns to scale case," MPRA Paper 97378, University Library of Munich, Germany.
    9. Tanaka Yasuhito, 2022. "Involuntary Unemployment Under Ongoing Nominal Wage Rate Decline in Overlapping Generations Model," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 67(1), pages 11-26, April.
    10. Tanaka, Yasuhito, 2020. "Fiscal policy under involuntary unemployment," MPRA Paper 102507, University Library of Munich, Germany.
    11. Tanaka, Yasuhito, 2021. "Technical progress and involuntary unemployment under deflation with real balance effect and fiscal policy for full-employment," MPRA Paper 106714, University Library of Munich, Germany.
    12. Tanaka, Yasuhito, 2020. "Involuntary unemployment under monopolistic competition and fiscal policy for full-employment," MPRA Paper 101479, University Library of Munich, Germany.
    13. Yasuhito Tanaka, 2021. "An Elementary Mathematical Model for MMT (Modern Monetary Theory)," Research in Applied Economics, Macrothink Institute, vol. 13(3), pages 1-20, September.
    14. Tanaka, Yasuhito, 2022. "Budget deficit in a growing monetary economy: ver. 2," MPRA Paper 115631, University Library of Munich, Germany.
    15. Tanaka Yasuhito, 2020. "Microeconomic Foundation of the Phillips Curve," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 65(3), pages 14-26, December.
    16. Tanaka Yasuhito, 2021. "Microeconomic Foundation for Phillips Curve with a Three-Period Overlapping Generations Model and Negative Real Balance Effect," Central European Economic Journal, Sciendo, vol. 8(55), pages 163-175, January.
    17. Tanaka, Yasuhito, 2021. "Mmtの数理モデルについて [A mathematical model of MMT]," MPRA Paper 108425, University Library of Munich, Germany.
    18. Yasuhito Tanaka, 2022. "Debt to GDP Ratio from the Perspective of MMT," Business Management and Strategy, Macrothink Institute, vol. 13(1), pages 1-12, June.
    19. Tanaka, Yasuhito, 2020. "Involuntary unemployment with divisible labor supply with a three-periods overlapping generations model under monopolistic competition," MPRA Paper 99354, University Library of Munich, Germany.
    20. Tanaka, Yasuhito, 2021. "A game-theoretic analysis of fiscal policy under economic growth from the perspective of MMT," MPRA Paper 107402, University Library of Munich, Germany.

    More about this item

    Keywords

    Monopolistic competition; overlapping generations model; involuntary unemployment; indivisible labor supply;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:serxxx:v:68:y:2023:i:06:n:s0217590820500307. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ser/ser.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.