GROWTH, UNEMPLOYMENT AND NONEXISTENCE OF LABOR MARKET IN A RAMSEY TYPE MODEL

Authors

  • Fernando A. Noriega Ureña Departamento de Producción Económica, UAM-Xochimilco
  • Ramón Tirado Jiménez Departamento de Producción Económica, UAM-Xochimilco

DOI:

https://doi.org/10.21919/remef.v2i1.143

Keywords:

Employment determination, Labor demand, Growth models

Abstract

This paper shows that, on the basis of a Ramsey model, a firm that maximizes the profit rate, subject to a technology with diminishing marginal products, achieves better equilibrium levels than a firm maximizing net profit. It is also shown the nonexistence of labor market and unemployment under steady state conditions.

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Published

2017-09-21

How to Cite

Noriega Ureña, F. A., & Tirado Jiménez, R. (2017). GROWTH, UNEMPLOYMENT AND NONEXISTENCE OF LABOR MARKET IN A RAMSEY TYPE MODEL. Revista Mexicana De Economía Y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), 2(1). https://doi.org/10.21919/remef.v2i1.143

Issue

Vol. 2 No. 1: Marzo

Section

Artículos