Pareto Inefficiency of Market Economies: Search and Efficiency Wage Models /

This paper shows that market economies with search and in which wages are affected by efficiency wage considerations are not constrained Pareto efficient. Wages are not set at Pareto efficient levels, nor is the level of employment (unemployment) Pareto efficient. We identify the nature of the biase...

Ausführliche Beschreibung

Weitere Titel:

Pareto Inefficiency of Market Economies

1. Verfasser:

Greenwald, Bruce

Körperschaft:

National Bureau of Economic Research

Weitere Verfasser:

Stiglitz, Joseph E.

Format:

Elektronisch E-Book

Sprache:

Englisch

Veröffentlicht:

Cambridge, Mass. National Bureau of Economic Research 1988.
Cambridge, Mass. : National Bureau of Economic Research, 1988.

Zusammenfassung:

This paper shows that market economies with search and in which wages are affected by efficiency wage considerations are not constrained Pareto efficient. Wages are not set at Pareto efficient levels, nor is the level of employment (unemployment) Pareto efficient. We identify the nature of the biases and the welfare improving government interventions.

Umfang:

1 online resource: illustrations (black and white);

Anmerkungen:

July 1988.

Schlagworte:

Wages > Mathematical models.

Unemployment > Mathematical models.