Kinky perceived demand curves and Keynes-Negishi equilibria

Jacques H. Dreze; P.J.J. Herings

doi:10.1111/j.1742-7363.2008.00072.x

Kinky perceived demand curves and Keynes-Negishi equilibria

Jacques H. Dreze^*, P.J.J. Herings

^*Corresponding author for this work

Research output: Contribution to journal › Article › Scientific › peer-review

Abstract

The label "Keynes-Negishi equilibria" is attached here to equilibria in a monetary economy with imperfectly competitive product and labor markets where business firms and labor unions hold demand perceptions with kinks: as posited in Negishi's 1979 book Microeconomic Foundations of Keynesian Macroeconomics. Such equilibria are defined in a general equilibrium model, and shown to exist. Methodological implications are briefly discussed in a concluding section.

Original language	English
Pages (from-to)	207-246
Number of pages	40
Journal	International Journal of Economic Theory
Volume	4
Issue number	2
DOIs	https://doi.org/10.1111/j.1742-7363.2008.00072.x
Publication status	Published - Jun 2008
Externally published	Yes

Keywords

equilibrium
imperfect competition
perceived demands
kinky demand
pricing rules
union wage model
union objectives
cash-in-advance
IMPERFECT COMPETITION
TRADE-UNIONS
MARKET
UNDEREMPLOYMENT
COORDINATION
RIGIDITIES
ECONOMY
PRICES

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10.1111/j.1742-7363.2008.00072.x

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title = "Kinky perceived demand curves and Keynes-Negishi equilibria",

abstract = "The label {"}Keynes-Negishi equilibria{"} is attached here to equilibria in a monetary economy with imperfectly competitive product and labor markets where business firms and labor unions hold demand perceptions with kinks: as posited in Negishi's 1979 book Microeconomic Foundations of Keynesian Macroeconomics. Such equilibria are defined in a general equilibrium model, and shown to exist. Methodological implications are briefly discussed in a concluding section.",

keywords = "equilibrium, imperfect competition, perceived demands, kinky demand, pricing rules, union wage model, union objectives, cash-in-advance, IMPERFECT COMPETITION, TRADE-UNIONS, MARKET, UNDEREMPLOYMENT, COORDINATION, RIGIDITIES, ECONOMY, PRICES",

author = "Dreze, {Jacques H.} and P.J.J. Herings",

year = "2008",

month = jun,

doi = "10.1111/j.1742-7363.2008.00072.x",

language = "English",

volume = "4",

pages = "207--246",

journal = "International Journal of Economic Theory",

issn = "1742-7355",

publisher = "Wiley-Blackwell",

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T1 - Kinky perceived demand curves and Keynes-Negishi equilibria

AU - Dreze, Jacques H.

AU - Herings, P.J.J.

PY - 2008/6

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N2 - The label "Keynes-Negishi equilibria" is attached here to equilibria in a monetary economy with imperfectly competitive product and labor markets where business firms and labor unions hold demand perceptions with kinks: as posited in Negishi's 1979 book Microeconomic Foundations of Keynesian Macroeconomics. Such equilibria are defined in a general equilibrium model, and shown to exist. Methodological implications are briefly discussed in a concluding section.

AB - The label "Keynes-Negishi equilibria" is attached here to equilibria in a monetary economy with imperfectly competitive product and labor markets where business firms and labor unions hold demand perceptions with kinks: as posited in Negishi's 1979 book Microeconomic Foundations of Keynesian Macroeconomics. Such equilibria are defined in a general equilibrium model, and shown to exist. Methodological implications are briefly discussed in a concluding section.

KW - equilibrium

KW - imperfect competition

KW - perceived demands

KW - kinky demand

KW - pricing rules

KW - union wage model

KW - union objectives

KW - cash-in-advance

KW - IMPERFECT COMPETITION

KW - TRADE-UNIONS

KW - MARKET

KW - UNDEREMPLOYMENT

KW - COORDINATION

KW - RIGIDITIES

KW - ECONOMY

KW - PRICES

U2 - 10.1111/j.1742-7363.2008.00072.x

DO - 10.1111/j.1742-7363.2008.00072.x

M3 - Article

SN - 1742-7355

VL - 4

SP - 207

EP - 246

JO - International Journal of Economic Theory

JF - International Journal of Economic Theory

IS - 2

ER -

Kinky perceived demand curves and Keynes-Negishi equilibria

Abstract

Keywords

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