Cyclical Strikes and Human Capital Accumulation under Asymmetric Information
نویسنده
چکیده
Strikes are totally ine¢cient from an economic point of view. They occur when the two parties that bargain over a contract do not ...nd an agreement and the result is a loss of utility for both. In spite of their clear ine¢ciency in the real world strikes are very common both in the rich economies as well as in the poor countries. Moreover recent empirical literature found some regularities over time and over countries regarding the strike behavior of the Trade Unions. The aim of this paper is to develop a theory that could explain this apparent economic paradox as well as some of the most known regularities. At the same time we also aim to link the analysis of the strikes with the investment decisions of employers and workers in that particular kind of capital good known as Human Capital. This kind of approach can put under a new light the role played by the Trade Unions in the process of economic growth.
منابع مشابه
Investigating the importance of human and social capital in the trade of ECO members and their asymmetric effects on industrial and agricultural goods
According to Porter (1990) theory, countries go through different stages in the development path: the first stage is the export of raw materials and raw materials, the second stage is the export of industrial capital products, the third stage is the export of knowledge products and finally the class war for more wealth. . This paper examines the behavior of the development path through the trad...
متن کاملThe Relationship between Capital Investment Choice and Capital Productivity: A Test of Firm Life Cycle Theory (A Comparative Investigation of Cyclical and Non-Cyclical Companies)
According to the firm life cycle theory, companies go through certain behavioral patterns in various stages of their life. A thorough understanding and recognition of these behavioral patterns, new investment in assets and the optimal use of assets can considerably enhance the capital productivity. In the current study, the relationship between the stages of firm life cycle and capital producti...
متن کاملTemporary bubbles in an economy with under-accumulation
This paper studies the equilibrium dynamics of an overlapping generations model with capital, money and cash-in-advance constraints. At each date the economy can experience two different regimes. In the first one the cash-inadvance constraint is binding and money is a dominated asset. In the second one, the constraint is strictly satisfied and money has the same return as capital. When the seco...
متن کاملInvestigating the Economic Growth Response of Developing Countries to Shocks Caused by Financial Development and the Accumulation of Human Capital
The aim of this study is to investigate the reaction of the economic growth of developing countries against the shocks caused by financial development and the accumulation of human capital in 2019. The research method is applied in terms of purpose and semi-experimental in terms of data collection method and post-event approach (through past information) and descriptive-correlation research typ...
متن کاملAnalysis of the Impact of Economic Growth and Asymmetric Information of Capital Market of Iran on Investors\' Confidence: A Multivariate GARCH approach
The stock exchange, as part of the capital market, in case of necessary conditions, can equip national capital and direct it towards economic growth. A secure environment for investment and information asymmetry are considered to be the features of a good business, in which managers are working towards stockholders. This research seeks to investigate whether information asymmetry of financial m...
متن کامل