Chaotic implications of the natural rate of unemployment

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• 作者：Bhaduri ; Amit
• 关键词：C62 ; C69 ; D84 ; E24 ; Chaos ; Evolution unemployment ; Natural rate
• 刊名：Structural Change and Economic Dynamics
• 出版年：2002
• 出版时间：September, 2002
• 年：2002
• 卷：13
• 期：3
• 页码：357-366
• 全文大小：83.5 K

文摘

By means of a discrete time, dynamic model this paper shows that, despite correct short-term expectations about price change by all agents concerned, the economy may exhibit chaotic behaviour rather than convergence to a natural, equilibrium rate, when wage bargain takes place according to the usual specification of the Phillips curve while firms maximize profit. The lack of coordination between profit-maximizing firms and wage-bargaining workers may result in an irregular dynamic path which questions whether the natural rate, even if it exists, is at all knowable in these circumstances.