Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5055610 | Economic Modelling | 2011 | 8 Pages |
In this paper, we investigate the analytical links between the rate of unemployment, monetary creation and how individuals share the value added in an economy with three types of agents: capital owners, managers and employees. This relationship relies on the fact that the rate of unemployment depends on many macroeconomic characteristics such as: creation of money, external balance of goods and services and mark-up pricing. The latter being decomposed into the expected margin rate and the growth rate of the unitary wage cost that characterize the primary value-added sharing.
Research Highlights⺠We propose an axiomatic-based model in which agents may play three different roles: capital owner, manager and employee; those three roles are connected with into a particular hierarchy and the repartition of the value added depends on conflicts between these three types of agents. We then provide an interpretation of Obama's inauguration speech: “Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some [. . .].”