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A capital accumulation model of the workers' enterprise
Author(s) -
Shimomura Koji
Publication year - 1993
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090140509
Subject(s) - economics , uniqueness , investment (military) , capital (architecture) , wage , wage rate , capital accumulation , monetary economics , microeconomics , labour economics , mathematics , profit (economics) , mathematical analysis , archaeology , politics , political science , law , history
This article formulates a capital accumulation model of the workers' enterprise in which the standard adjustment‐costs theory of investment is introduced into Sertel's framework. The existence, uniqueness and local stability of the steady state are shown to be established under mild conditions and the long‐run effects of changes in the price of output, the external wage rate and the interest rate on the volume of capital and the size of membership are examined.