Discussion Papers no. 139

Aggregation when markets do not clear

This paper presents a method for aggregation across markets in a Non-Walrasian model, focusing mainly on labor markets. The method utilizes a probabilistic approach based on aggregating across virtual price functions instead of demand functions or budget shares as is normally done. By assuming log-linear virtual price functions and using the GEV distribution, it is possible to identify most of the micro structure of an economy in disequilibrium from observed aggregate variables. The paper discusses different possible indicators of disequilibrium in the labor market and presents some illustrative estimation results.

Om publikasjonen

Tittel

Aggregation when markets do not clear

Ansvarlig

Leif Andreassen

Serie og -nummer

Discussion Papers no. 139

Utgiver

Statistics Norway, Research Department

Emne

Discussion Papers

Antall sider

80

Målform

Engelsk

Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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