'Divergent Equilibrium' in a Labour-Managed Economy
Analysis and Workers' Management, Vol. 3, No. 25, pp. 289-296, 1991
7 Pages Posted: 30 Apr 2011
Date Written: September 1, 1991
This note demonstratres a potential theoretical problem in achieving general equilibrium in an economy composed of competitive firms maximizing income per worker, under conditions of fixed capital; a problem which might suggest that disequilibria in some markets might be a rule rather than exception. The result reinforces the view that a number of behavioral peculiarities in labour-managed firms may have serious repercussions on the behaviour of the labour-managed economy in general equilibrium.
Keywords: workers management, labor management, socialism, general equilibrium
JEL Classification: J5, L2, M54, C6, D5
Suggested Citation: Suggested Citation