Market Syndicalism and Market Imbalances
Dennis R. Heffley
University of Connecticut - Department of Economics
August 21, 1992
Journal of Comparative Economics, Vol. 16, No. 4, p. 670, 1992
The endogenous relationship between income-per-worker (Y) and product price (E’) under labor management or, more broadly, market syndicalism, causes P to play a critical role in clearing product and labor markets. The level of P that clears the product market, however, may differ from the level of P required for the labor market to clear. Since only one value of P can prevail at a time, clearing of the product market does not ensure clearing of the labor market, and vice versa. The analysis of divergent equilibria is extended to include government. Tax/subsidy instruments can be used to achieve general equilibrium in a syndicalist economy, but resulting fiscal imbalances may require additional forms of intervention.
Number of Pages in PDF File: 18
Keywords: worker management, labor management, Yugoslavia, general equilibrium
JEL Classification: P40, E1, O1Accepted Paper Series
Date posted: April 10, 2011
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