Market Syndicalism and Market Imbalances

18 Pages Posted: 10 Apr 2011

See all articles by Zeljko Bogetic

Zeljko Bogetic

World Bank

Dennis R. Heffley

University of Connecticut - Department of Economics

Date Written: August 21, 1992

Abstract

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.

Keywords: worker management, labor management, Yugoslavia, general equilibrium

JEL Classification: P40, E1, O1

Suggested Citation

Bogetic, Zeljko and Heffley, Dennis R., Market Syndicalism and Market Imbalances (August 21, 1992). Journal of Comparative Economics, Vol. 16, No. 4, p. 670, 1992. Available at SSRN: https://ssrn.com/abstract=1805814

Zeljko Bogetic (Contact Author)

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Dennis R. Heffley

University of Connecticut - Department of Economics ( email )

365 Fairfield Way, U-1063
Storrs, CT 06269-1063
United States
860-486-4669 (Phone)
860-486-4463 (Fax)

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