Autore
Baniak, A.

Titolo
The multimarket labour-managed firm and the effects of devaluation
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1996 - Fascicolo: 4 - Pagina iniziale: 1 - Pagina finale: 27

This paper analyzes the effect of a devaluation of the domestic currency on the behaviour of a labour-managed firm which sells in both domestic and foreign markets and faces com petition only in the foreign market. It is shown that with high enough revenues from the domestic market, the labour-managed firm will sell less at home and more abroad after the devaluation, thus reacting in the same way as a profit-maximizer. An analogous reaction occurs when the multimarket labour-managed firm receives a small export subsidy. The paper therefore extends and reverses the results of Mai and Hwang (1989) and Okuguchi (1991) who showed that under certain conditions a labour-managed firm will sell less abroad after the introduction of an export subsidy.



Testo completo: http://hdl.handle.net/1814/575

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