Discussion Paper

No. 2014-41 | October 21, 2014
Conflict in the Wage-Led Growth Model

Abstract

We model the interaction between capitalists and entrepreneurs as a dynamic game. The open-loop Nash equilibrium and the closed-loop Nash equilibrium are distinguished. The elasticity of intertemporal substitution as well as the level and responsiveness of the wage rate to the accumulation of capital are shown to be important for wage-led growth.

JEL Classification:

B51, C73

Assessment

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Links

Cite As

Romar Correa (2014). Conflict in the Wage-Led Growth Model. Economics Discussion Papers, No 2014-41, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2014-41


Comments and Questions


Anonymous - Referee Report 1
December 09, 2014 - 15:37

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Anonymous - Invited Reader Comment
December 17, 2014 - 17:27

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Romar Correa - Response
December 19, 2014 - 09:54

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Anonymous - Referee Report 2
January 05, 2015 - 15:59

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Romar Correa - Reply to Referee Report 2
January 08, 2015 - 15:40

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