The system-wide impacts of imperfect competition in the regional labour market are examined by means of a macro - micro simulation model (AMOS) parameterised on Scottish data. A number of theories of the operation of the regional labour market are reviewed and it is indicated how these can be operationalised within AMOS through the adoption of different labour-market closures. Two sets of simulations are performed. The first involves nominal and real wage shocks to the regional economy. In the second, a demand disturbance is introduced under various labour-market closures. The sensitivity of the results to assumptions concerning the openness of the regional economy and the flexibility of the production technology is also discussed.
- imperfect competition
- general equilibrium-analysis
- macro -micro simulation model
Harrigan, F., McGregor, P. G., Swales, J. K., & Dourmashkin, N. (1992). Imperfect competition in regional labor-markets - a computable general equilibrium-analysis. Environment and Planning A, 24(10), 1463-1481. https://doi.org/10.1068/a241463