This paper challenges the prediction of Todaro's model of rural-to-urban migration that an ‘increase in urban employment increases urban unemployed.’ It is shown that if the urban demand for labor is isoelastic or inelastic, creation of urban jobs causes urban unemployment to decline and...

This paper makes a pioneering attempt to provide a theory of determination of interest rate in the informal credit market in a small open economy in terms of a three-sector general equilibrium model. There are two informal sectors which obtain production loans from a monopolistic moneylender and...

In this paper, we analyse the effect of unionisation on the growth of the economy in the presence of ‘Efficiency Wage Hypothesis’. We use both ‘Efficient Bargaining’ model and ‘Right to Manage’ model to solve the negotiation problem. Unionisation raises negotiated wage rate and the...

This paper develops a model of endogenous economic growth with special focus on the role of unionized labour market and on the interaction between the tax financed productive public expenditure and unemployment benefit policy of the government. We incorporate a ‘Managerial’ labour union in...