Autore: Suvakovic Olgin, Djordje
Titolo: Simulating codetermination in a cooperative economy
Periodico: European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1992 - Fascicolo: 92 - Pagina iniziale: 1 - Pagina finale: 18

The received theory of wage-maximising labour-managed or cooperative firms (LMFs) cites three fundamental deficiences caused by their short-run behaviour: the failure of the labour market to clear; the inefficient utilisation of employed labour; a high unemployment-inflation trade off due to firms' nonpositive employment response to price changes. The paper proposes an automatic transfer mechanism, coupled with the auctioneer organisation of the labour market, that transforms the LMF's equilibrium into a convex combination of equilibria of the uncontrolled cooperative and of the conventional profit-maximising firm, with their weights being freely determined by appropriate specification of a transfer function. The scheme is thus able to significantly improve allocative efficiency, ensuring altogether labour market clearance and the strictly positive employment reaction by wage-maximising cooperatives.




Testo completo: http://hdl.handle.net/1814/409

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