Chang, Juin-jen; Lai, Ching-chong; Chang, Wen-ya - In: Economica 65 (1998) 257, pp. 145-51
This paper reexamines the dynamic features and the long-run effects of raising interest rates on union membership and employment in the Jones-McKenna (1994) model. Two major findings emerge from the analysis. First, the dynamic system of Jones and McKenna's model exhibits saddlepoint stability,...