Production Technologies and the Phillips Curve

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http://eprints.org/relation/isVersionOf https://pure.iiasa.ac.at/id/document/2369 http://eprints.org/relation/isVolatileVersionOf https://pure.iiasa.ac.at/id/document/2369 http://eprints.org/relation/isCoversheetVersionOf https://pure.iiasa.ac.at/id/document/2369 archive 351 disk0/00/00/23/40 2016-01-15 01:53:57 2021-08-27 17:11:33 2016-01-15 01:53:57 monograph show 2 Chichilnisky G. AL0564 Heal G. AL0741 Production Technologies and the Phillips Curve pub iis_ecn iis_met prog_ind In an economy with increasing returns to scale in production, wage changes and unemployment levels are shown to fluctuate systematically. Such fluctuations are part of the stable long-run configuration of the economy. They generate data sets in which wage changes show a negative Phillips-type correlation with the level of unemployment. This negative correlation is a reflection of the conventional Walrasian price adjustment process in the labor market, and does not imply that across equilibria there is a negative relation between wage changes and unemployment. In particular, it does not imply the existence of a trade-off between inflation and unemployment. 1983-09 published CP-83-042 CP-83-042 1810 1950 public collaborative_paper IIASA, Laxenburg, Austria 14 FALSE info:eu-repo/semantics/book