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THE LABOUR MARKET AND TECHNICAL CHANGE IN ENDOGENOUS CYCLES
Author(s) -
Ferri Piero
Publication year - 2007
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.2007.00281.x
Subject(s) - economics , phillips curve , ambiguity , nairu , business cycle , technical change , macro , productivity , unemployment , endogeny , capital (architecture) , macroeconomics , keynesian economics , computer science , history , archaeology , programming language , medicine
The paper examines how a macro model, where there is an endogenous technical progress and strong interdependence between real and monetary aspects in both the labour and capital markets, can generate endogenous business cycles. This approach helps to understand the ambiguity of the NAIRU, the nature of the Phillips curve and the impact of labour productivity changes on the curve itself. Finally, the presence of expectation functions based upon a Markov‐switching time series process fosters endogenous dynamics and contributes to make asymmetries an important feature of the cycles.