Negative Real Balance Effects in the Presence of Involuntary Unemployment
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| Format: | Artículo científico |
| Language: | en |
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Vilniaus Universitetas
2021
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| author | Yasuhito Tanaka |
| author_facet | Yasuhito Tanaka |
| contents | Negative Real Balance Effects in the Presence of Involuntary Unemployment Yasuhito Tanaka Economía y Finanzas three involuntary unemployment Negative real balance effects generations overlapping generations model We examine the existence of negative real balance effects (or so-called Pigou effects) by falls in the nominal wage rate and the prices of the goods in situations where there is involuntary unemployment using a three-generations overlapping generations model, with a childhood period and pay-as-you go pension system for the older generation of consumers. We will show that if the net savings of the younger generation of consumers are larger than their debts due to consumption in their childhood period, there exists a positive real balance effect, and employment increases by a fall in the nominal wage rate; on the other hand, if the net savings of the younger generation of consumers are smaller than their debts, there exists a negative real balance effect, and employment decreases by a fall in the nominal wage rate. 2021 artículo científico 2424-6166 https://www.redalyc.org/articulo.oa?id=692272863003 https://www.redalyc.org/journal/6922/692272863003/ https://www.redalyc.org/journal/6922/692272863003/html/ https://www.redalyc.org/journal/6922/692272863003/692272863003.epub https://www.redalyc.org/journal/6922/692272863003/movil https://doi.org/10.15388/Ekon.2021.1.3 en http://www.redalyc.org/revista.oa?id=6922 Ekonomika application/pdf Vilniaus Universitetas Ekonomika (Lituania) Num.1 Vol.100 |
| format | Artículo científico |
| id | redalyc_692272863003 |
| institution | Redalyc |
| language | en |
| publishDate | 2021 |
| publisher | Vilniaus Universitetas |
| spellingShingle | Negative Real Balance Effects in the Presence of Involuntary Unemployment Yasuhito Tanaka Economía y Finanzas three involuntary unemployment Negative real balance effects generations overlapping generations model Negative Real Balance Effects in the Presence of Involuntary Unemployment Yasuhito Tanaka Economía y Finanzas three involuntary unemployment Negative real balance effects generations overlapping generations model We examine the existence of negative real balance effects (or so-called Pigou effects) by falls in the nominal wage rate and the prices of the goods in situations where there is involuntary unemployment using a three-generations overlapping generations model, with a childhood period and pay-as-you go pension system for the older generation of consumers. We will show that if the net savings of the younger generation of consumers are larger than their debts due to consumption in their childhood period, there exists a positive real balance effect, and employment increases by a fall in the nominal wage rate; on the other hand, if the net savings of the younger generation of consumers are smaller than their debts, there exists a negative real balance effect, and employment decreases by a fall in the nominal wage rate. 2021 artículo científico 2424-6166 https://www.redalyc.org/articulo.oa?id=692272863003 https://www.redalyc.org/journal/6922/692272863003/ https://www.redalyc.org/journal/6922/692272863003/html/ https://www.redalyc.org/journal/6922/692272863003/692272863003.epub https://www.redalyc.org/journal/6922/692272863003/movil https://doi.org/10.15388/Ekon.2021.1.3 en http://www.redalyc.org/revista.oa?id=6922 Ekonomika application/pdf Vilniaus Universitetas Ekonomika (Lituania) Num.1 Vol.100 |
| title | Negative Real Balance Effects in the Presence of Involuntary Unemployment |
| topic | Economía y Finanzas three involuntary unemployment Negative real balance effects generations overlapping generations model |
| url | https://www.redalyc.org/articulo.oa?id=692272863003 https://www.redalyc.org/journal/6922/692272863003/ https://www.redalyc.org/journal/6922/692272863003/html/ https://www.redalyc.org/journal/6922/692272863003/692272863003.epub https://www.redalyc.org/journal/6922/692272863003/movil https://doi.org/10.15388/Ekon.2021.1.3 |