Micro-founded macro-models and labour market

This essay aims at presenting a dynamic macro-economic model which is micro-founded, in order to introduce in a more realistic way the labour market, by separating demand and supply, since their determinants are different: labour demand comes mainly from the maximizing bahaviour of firms, while labour supply is chosen by families on the basis (but not only) of the real wage rate. A number of computer simulations show that many different types of trajectories are possible, from a stationary state to regular growth, to both regular and damped business cycles.