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Empirica

, Volume 37, Issue 4, pp 403–424 | Cite as

Is there any scope for corporatism in macroeconomic policies?

  • Nicola Acocella
  • Giovanni Di Bartolomeo
  • Wilfried Pauwels
Original Paper

Abstract

This paper studies corporatism as the outcome of bargaining between the government and a representative labor union. We show that if negotiations between these two parties only relate to macroeconomic policies and unions are not assumed to be inflation-averse, corporatism can never be beneficial to both parties. As corporatist policies are nevertheless commonly observed in this context, we discuss possible explanations that reconcile the theory with actual observations. The policy implications of these explanations are also discussed.

Keywords

Social pacts Axiomatic bargaining Unions Issue linkage 

JEL Classifications

E00 E58 E61 J50 

Notes

Acknowledgments

We gratefully acknowledge two anonymous referees for their useful comments on a previous version. Nicola Acocella gratefully acknowledges financial support from the University of Rome La Sapienza. Wilfried Pauwels also gratefully acknowledges financial support from the National Bank of Belgium.

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Copyright information

© Springer Science+Business Media, LLC. 2009

Authors and Affiliations

  • Nicola Acocella
    • 1
  • Giovanni Di Bartolomeo
    • 2
  • Wilfried Pauwels
    • 3
  1. 1.Dipartimento di Studi GeoeconomiciUniversità di Roma, ‘La Sapienza’RomeItaly
  2. 2.University of TeramoTeramoItaly
  3. 3.University of AntwerpAntwerpBelgium

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