Papers by Laurence Lasselle
The purpose of this paper is to give new insights of the method,of Helleman (1980) in the context... more The purpose of this paper is to give new insights of the method,of Helleman (1980) in the context of macrodynamics. This method ,explains how ,a difference ,equation can be locally studied from the Feigenbaum,equation in the case of a constant Jacobian matrix. First we introduce ,this technique. Second we apply ,it in two models: the model ,of Matsuyama,(1999) and the model of Kaldor (1957). Finally we present,an extension,of the technique in the case of non constant (linear) Jacobian matrix and apply this extension in the model of Médio (1992). JEL Classification:C60, E32.
Oxford Economic Papers, 2001
It is well known that imperfect competition in the labour market is sufficient to obtain unemploy... more It is well known that imperfect competition in the labour market is sufficient to obtain unemployment in macroeconomic models. Despite this common wisdom, imperfect competition in the product market may by itself imply unemployment, regardless of the organisation of the labour ...
Journal of Macroeconomics, 2007
It is well known that processes of growth based solely on factor accumulation cease at some point... more It is well known that processes of growth based solely on factor accumulation cease at some point because of diminishing returns to scale of production. By contrast, introducing innovative products may create new opportunities on the production side. Innovation may be ...
CRIEFF Discussion Papers, 1998
We study the link between involuntary unemployment and income feedback effects in a model with an... more We study the link between involuntary unemployment and income feedback effects in a model with an imperfect product market. We provide a condition based on the demand such that full employment prevails when income feedback effects are neglected, while involuntary ...
… : Social Conflicts, Labour …, 2004
Is Regionalism the Outcome of Insufficient or Excessive Globalisation? DSpace/Manakin Repository.... more Is Regionalism the Outcome of Insufficient or Excessive Globalisation? DSpace/Manakin Repository. Search Cadmus. Search Cadmus This Collection. Advanced Search. Browse. ...
We consider an overlapping generation model based on Matsuyama (1999) and show that, whenever act... more We consider an overlapping generation model based on Matsuyama (1999) and show that, whenever actual capital accumulation falls below its balanced growth path, subsidising innovators by taxing consumers has stabilising ef-fects and increases welfare. Further, if the steady state is ...
argues that in a cross-section analysis of countries there exists a positive correlation between ... more argues that in a cross-section analysis of countries there exists a positive correlation between long-term growth rates and the persistence of output fluctuations. The current paper extends this line of research by examining manufacturing sectors of an economy which can be characterised by two levels of technology; a low level and a high level. Analysis of the data reveals a positive correlation between long-term growth rates and the persistence of output fluctuations in 'high-tech' sectors. This empirical analysis is further supported by reformulating the model of Matsuyama (1999b) in a stochastic environment. Within this framework the model is able to capture the two main theories of growth, namely; the Solow model and the Romer model. The stochastic nature of the long run output trend is endogenous and based on technological shocks. Despite the cyclical nature of the shocks we are able to show that output fluctuations are more persistent in 'high-tech' sectors. JEL classification: E32, D43
CRIEFF Discussion Papers, 1997
We examine the OLG model of Reichlin (1986). By using the Helleman's method (1980), we show ... more We examine the OLG model of Reichlin (1986). By using the Helleman's method (1980), we show that the difference equation of the model can be locally studied from the Feigenbaum equation. We can then explain the existence of endogenous fluctuations acording to the ...
GREQAM, 1996
We investigate the existence conditions of involuntary unemployment in an overlapping generations... more We investigate the existence conditions of involuntary unemployment in an overlapping generations model with an imperfect output market. At the temporary equilibrium, unemployment is involuntary if it exists whatever the nominal wage. The study of the price-elasticity components gives ...
Economics Letters 117(1):182-185, Oct 2012
Cecchetti et al. (2006) develop a method for allocating macroeconomic performance changes among t... more Cecchetti et al. (2006) develop a method for allocating macroeconomic performance changes among the
structure of the economy, variability of supply shocks and monetary policy. We propose a dual approach
of their method by borrowing well-known tools from the production theory.
We consider the general equilibrium of an economy with Cournot competition in the product market.... more We consider the general equilibrium of an economy with Cournot competition in the product market. In this framework, firms endowed with market power are assumed to know the true or objective demand function. However, depending on the economy's structure, the demand function varies with the size of income feedback effects. Two cases are studied depending on whether the consumers' income is considered by firms as exogenous (no feedback effects) or indogenous (feedback effects) to their actions. We establish a relationship between both cases, that is to say an expression for the demand for goods including feedback effects in terms of the demand without feedback effects. This relationship is useful regarding the conditions ensuring the existence of a Cournot equilibrium and also the features of this equilibrium. We illustrate the latter point through macroeconomic implications such as the debate, full employment vs involuntary unemployment.
We investigate how imperfect competition affects the occurence and properties of endogenous busin... more We investigate how imperfect competition affects the occurence and properties of endogenous business cycles with underemployment in an overlapping generations model. We consider a competitive product market in association with an imperfect labour market. The latter is ...
ABSTRACT In an OG model with competition à la Cournot, we show the existence of a stable 2-cylcle... more ABSTRACT In an OG model with competition à la Cournot, we show the existence of a stable 2-cylcle (in prices and employment levels) in the forward dynamics with learning.
While Rational Expectations have dominated the paradigm of expectations formation, they have been... more While Rational Expectations have dominated the paradigm of expectations formation, they have been more recently challenged on the empirical ground such as, for instance, in the dynamics of the exchange rate. This challenge has led to the introduction of heterogeneous expectations in economic modeling. More specifically, the forecasts of the market participants have been drawn from competing views. Two behaviours are usually considered: agents are either fundamentalist or chartist.
ABSTRACT We consider a simple general equilibrium model with imperfect competition on the labor m... more ABSTRACT We consider a simple general equilibrium model with imperfect competition on the labor market. We show that on this market a rise in the number of trade unions may reduce the employment level. This result depends on the properties of the nominal wage-elasticity of the labor demand. It is achieved for standard specifications on technology and preferences. It's principally based on an intermediate complementary between production factors.
This paper considers an economy with imperfect competition on the product markets. It studies the... more This paper considers an economy with imperfect competition on the product markets. It studies the link between underemployment at all wages and feedback effects due to firms' activities. Since the economy is composed of local markets, we are able to endogenise the size of ...
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Papers by Laurence Lasselle
structure of the economy, variability of supply shocks and monetary policy. We propose a dual approach
of their method by borrowing well-known tools from the production theory.
structure of the economy, variability of supply shocks and monetary policy. We propose a dual approach
of their method by borrowing well-known tools from the production theory.