Kinky Perceived Demand Curves and keynes-Negishi Equilibria

J. Drèze, P.J.J. Herings

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

The label “keynes–negishi equilibria” is attached here to equilibria in a monetary economy with imperfectly competitive product and labor markets where business firms and labor unions hold demand perceptions with kinks: as posited in negishi's 1979 book microeconomic foundations of keynesian macroeconomics. Such equilibria are defined in a general equilibrium model, and shown to exist. Methodological implications are briefly discussed in a concluding section.
Original languageEnglish
Pages (from-to)207-246
Number of pages39
JournalInternational Journal of Economic Theory
Volume4
DOIs
Publication statusPublished - 1 Jan 2008

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