Modifications of the Basic Model

  • Frank H. Stephen

Abstract

The literature on the economics of the labour-managed firm has developed considerably since the original presentation of what has been called in the previous chapter the W-V-M model. Some authors have presented more formal proofs of the properties of the W-V-M model (for example, Maurice and Ferguson, 1972; Dreze, 1976; Pearce, 1977; Meade, 1979), but a major preoccupation has been the identification of circumstances under which the ‘perverse’ short-run supply response, which is characteristic of the basic model, disappears. In this chapter, the latter developments are considered in three broad groupings, i.e. those which consider:
  1. (1)

    a supply curve of labour which is less than infinitely elastic;

     
  2. (2)

    institutional arrangements which neutralise, if not reverse, the ‘perverse’ supply response;

     
  3. (3)

    alternatives to income per worker as the maximand.

     

Keywords

Income Posite Dition Auger Librium 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Frank H. Stephen 1984

Authors and Affiliations

  • Frank H. Stephen
    • 1
  1. 1.University of StrathclydeGlasgowUK

Personalised recommendations