Imperfect goods and labor markets, regulation, and spillover effects
(De)regulatory interventions frequently have unintended cross- market effects, which may or may not be desirable. We assess the effects of three policies on aggregate variables, in particular real income, from a theoretical perspective. Our results suggest that instruments acting upon wages have onl...
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| Format: | Others |
| Language: | English |
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Universität Potsdam
2003
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| Online Access: | http://nbn-resolving.de/urn:nbn:de:kobv:517-opus-13951 http://opus.kobv.de/ubp/volltexte/2007/1395/ |
| Summary: | (De)regulatory interventions frequently have unintended cross- market effects, which may or may not be desirable. We assess the effects of three policies on aggregate variables, in particular real income, from a theoretical perspective. Our results suggest that instruments acting upon wages have only a weak impact on real income, whereas the distribution of income is affected strongly. In contrast, a policy that enhances product market competition is fostering real income, but also impacts strongly on union wages and the distribution of income. |
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