Monopolistic Competition, Layoffs and Perishable Sectors
Autor(a) principal: | |
---|---|
Data de Publicação: | 1996 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10362/88061 |
Resumo: | This paper develops a general equilibrium model with monopolistic competition à la Dixit and Stiglits. In this economy, demand changes over time, generating the need for firms to vary the number of workers hired each time period. We show that, in such an economy, if restrictions are introduced on the ability of firms to layoff workers, employment rises in the short-run, but it may either rise or fall in the long-run. This depends on two opposite-sign effects on the optimal choice of leisure. One, vastly discussed in the literature, is that goods will in general be older, which will increase the demand for leisure. The other, which has been somewhat overlooked in the literature, is that each firm's life will be longer, which will increase the demand for labor and decrease the demand for leisure. Welfare may increase, if employment has also increased, since leisure consumption was initially higher than socially optimal. |
id |
RCAP_13b89ffdef414d9e2f15c89a87ac7ba3 |
---|---|
oai_identifier_str |
oai:run.unl.pt:10362/88061 |
network_acronym_str |
RCAP |
network_name_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository_id_str |
7160 |
spelling |
Monopolistic Competition, Layoffs and Perishable SectorsLayoff constraintsMonopolistic competitionPerishable goodsThis paper develops a general equilibrium model with monopolistic competition à la Dixit and Stiglits. In this economy, demand changes over time, generating the need for firms to vary the number of workers hired each time period. We show that, in such an economy, if restrictions are introduced on the ability of firms to layoff workers, employment rises in the short-run, but it may either rise or fall in the long-run. This depends on two opposite-sign effects on the optimal choice of leisure. One, vastly discussed in the literature, is that goods will in general be older, which will increase the demand for leisure. The other, which has been somewhat overlooked in the literature, is that each firm's life will be longer, which will increase the demand for labor and decrease the demand for leisure. Welfare may increase, if employment has also increased, since leisure consumption was initially higher than socially optimal.Nova SBERUNCabral, Célia Costa2019-11-22T12:05:14Z1996-081996-08-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10362/88061engCabral, Célia Costa, Monopolistic Competition, Layoffs and Perishable Sectors (August, 1996). FEUNL Working Paper Series No. 280info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T04:39:13Zoai:run.unl.pt:10362/88061Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:36:49.415665Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Monopolistic Competition, Layoffs and Perishable Sectors |
title |
Monopolistic Competition, Layoffs and Perishable Sectors |
spellingShingle |
Monopolistic Competition, Layoffs and Perishable Sectors Cabral, Célia Costa Layoff constraints Monopolistic competition Perishable goods |
title_short |
Monopolistic Competition, Layoffs and Perishable Sectors |
title_full |
Monopolistic Competition, Layoffs and Perishable Sectors |
title_fullStr |
Monopolistic Competition, Layoffs and Perishable Sectors |
title_full_unstemmed |
Monopolistic Competition, Layoffs and Perishable Sectors |
title_sort |
Monopolistic Competition, Layoffs and Perishable Sectors |
author |
Cabral, Célia Costa |
author_facet |
Cabral, Célia Costa |
author_role |
author |
dc.contributor.none.fl_str_mv |
RUN |
dc.contributor.author.fl_str_mv |
Cabral, Célia Costa |
dc.subject.por.fl_str_mv |
Layoff constraints Monopolistic competition Perishable goods |
topic |
Layoff constraints Monopolistic competition Perishable goods |
description |
This paper develops a general equilibrium model with monopolistic competition à la Dixit and Stiglits. In this economy, demand changes over time, generating the need for firms to vary the number of workers hired each time period. We show that, in such an economy, if restrictions are introduced on the ability of firms to layoff workers, employment rises in the short-run, but it may either rise or fall in the long-run. This depends on two opposite-sign effects on the optimal choice of leisure. One, vastly discussed in the literature, is that goods will in general be older, which will increase the demand for leisure. The other, which has been somewhat overlooked in the literature, is that each firm's life will be longer, which will increase the demand for labor and decrease the demand for leisure. Welfare may increase, if employment has also increased, since leisure consumption was initially higher than socially optimal. |
publishDate |
1996 |
dc.date.none.fl_str_mv |
1996-08 1996-08-01T00:00:00Z 2019-11-22T12:05:14Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10362/88061 |
url |
http://hdl.handle.net/10362/88061 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Cabral, Célia Costa, Monopolistic Competition, Layoffs and Perishable Sectors (August, 1996). FEUNL Working Paper Series No. 280 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Nova SBE |
publisher.none.fl_str_mv |
Nova SBE |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
repository.mail.fl_str_mv |
|
_version_ |
1799137985693745152 |