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https://www.um.edu.mt/library/oar/handle/123456789/69295
Title: | Efficiency-wage hypothesis and the operational production pattern |
Authors: | Bresnahan, Brian W. Naqvi, Nadeem Schürg, Carolin |
Keywords: | Equilibrium (Economics) Industrial productivity centers Efficiency wage theory Economic policy -- Case studies Labor market -- Case studies Factors of production |
Issue Date: | 2012 |
Publisher: | ISMASYSTEMS Scientific Research |
Citation: | Bresnahan, B. W., Naqvi, N., & Schürg, C. (2012). Efficiency-wage hypothesis and the operational production pattern. International Journal of Finance, Insurance and Risk Management, 2(3), 244-250. |
Abstract: | An economy’s production set is the collection of all net output vectors that the economy is capable of producing with a given technology and fixed quantities of primary factors of production. The boundary of this set is called the production possibility frontier or PPF. We show that, if the efficiency-wage hypothesis holds, a country’s PPF, though conceptually valid, is an operationally irrelevant concept, because the economy never operates on the PPF, which is a view that ought to be appreciated in light of persistent unemployment in the new structure of economies of the post-21st-Centurycrisis world. |
URI: | https://www.um.edu.mt/library/oar/handle/123456789/69295 |
Appears in Collections: | Volume 2, Issue 3, 2012 |
Files in This Item:
File | Description | Size | Format | |
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Efficiency_wage_hypothesis_and_the_operational_production_pattern.pdf | 159.99 kB | Adobe PDF | View/Open |
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