Bøger i Zeuthen Lectures serien

By systematically confronting theoretical models with econometric data, a leading macroeconomist and microeconomist present a unified and coherent view how and when productivity gains and economic growth are aided or hindered by competition policy.

The past fifteen years have witnessed the rise of the New Keynesian model as a framework of reference for the analysis of fluctuations and stabilization policies. That framework, which combines the rigor and internal consistency of dynamic general equilibrium models with such typically Keynesian assumptions as monopolistic competition and nominal rigidities, makes possible a meaningful, welfare-based analysis of the effects of monetary policy rules. But the conspicuous absence of unemployment from the standard New Keynesian model has given rise to both criticism and attempts to rectify this anomaly. In this book, Jordi Galí, one of the major contributors to the New Keynesian literature, offers a new approach to introducing unemployment into that framework.

A theoretical and empirical examination of wage differentials finds that traditional theories of competition do not explain why workers with identical skills are paid differently.