Scandinavian Working Papers in Economics

Umeå Economic Studies,
Umeå University, Department of Economics

No 591: Social Accounting in a Unionized Economy

Thomas Aronsson ()
Additional contact information
Thomas Aronsson: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden

Abstract: This paper concerns social accounting in an economy with union wage setting, where the equilibrium is characterized by unemployment. By analogy to the literature on social accounting under environmental external effects, the current value Hamiltonian (or extended NNP in utility terms) is not an exact welfare measure in an economy with unemployment. The present value of future changes in employment also becomes part of the exact welfare measure. Part of the welfare contribution of the future changes in employment is due to an external effect associated with the employed individuals' choices of hours of work. I also show how this 'employment effect' is modified, if the unions are able to directly affect the hours of work per employee.

Keywords: Social Accounting; Unemployment; Welfare Measurement

JEL-codes: I31; J64

22 pages, September 19, 2002

Full text files

DownloadAsset.action...Id=3&assetKey=ues591 PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to David Skog ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-02-05 17:13:51.