We study the implications of product and labor market imperfections for equilibrium unemployment under both exogenous … equilibrium unemployment. The relationship between the long-run unemployment and the intensity of product market competition is … long-run equilibrium unemployment is an increasing function of product market imperfections when the elasticity exceeds …

for equilibrium unemployment in an economy with product and labour market imperfections. We show that intensified product … market competition will reduce equilibrium unemployment, whereas the effect of increased capital intensity is more complex …. Higher capital intensity will decrease the equilibrium unemployment when the elasticity of substitution between capital and …

that labour markets clear competitively. At least for Europe, which has been suffering from high unemployment for a long … unemployment which results from the union-firm wage bargaining both with optimal and restricted profit taxation when capital is … the private sector playing a Nash game. The main conclusion is that in the presence of unemployment, the conventional …