ISSN:
1435-5477
Keywords:
JEL classification:D90
;
Key words:Underemployment, underutilization, irreversibility, poverty trap, endogenous fluctuations
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract. In a competitive overlapping generations model, technological irreversibilities and idiosyncratic uncertainty generate a misallocation of resources among segments, which takes the form of underemployment and underutilization of capacities at the aggregate level. This affects the qualitative properties of the equilibrium path. Indeed, increases in the variance of the technological shock can be responsible, a.o., for an “inescapable poverty trap,” or for periodic orbits generating endogenous fluctuations in underemployment.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/PL00013580
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