Falkinger, Josef; Grossmann, Volker - In: Journal of Institutional and Theoretical Economics (JITE) 159 (2003) 3, pp. 523-523
This paper develops a two-sector general-equilibrium model in which firms in the primary economy have to create workplaces prior to production and product-market competition. For this, we introduce the endogenous sunk-cost approach with two-stage decisions of firms from IO in the macro labor...