Abstract
In the preceding section we have analysed the effect of union wage bargaining in a model with endogenous investment and adjustment costs. With this model we have shown that the wage strategy of the union is time inconsistent and that investment and hence, the stock of capital will be lower than in the economy with competitive labour markets.
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© 2004 Springer-Verlag Berlin Heidelberg
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Lingens, J. (2004). Unions in a Solow Type Growth Model. In: Union Wage Bargaining and Economic Growth. Lecture Notes in Economics and Mathematical Systems, vol 542. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-17017-1_5
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DOI: https://doi.org/10.1007/978-3-642-17017-1_5
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-21522-6
Online ISBN: 978-3-642-17017-1
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