Abstract
We develop a model with three key features: a factor market distortion, monopoly power in the product market and indivisibilities in consumption. In this setting, multiple equilibria arise, one with high and the other with low equilibrium wages, incomes and output. It is also shown that even in a closed economy, growth may be immiserizing and, finally, that redistribution could be a "rich man's game".
Original language | English (US) |
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Pages (from-to) | 143-158 |
Number of pages | 16 |
Journal | Scandinavian Journal of Economics |
Volume | 106 |
Issue number | 1 |
DOIs | |
State | Published - 2004 |
All Science Journal Classification (ASJC) codes
- Economics and Econometrics