CFDP 720

General Equilibrium with Wage Rigidities: An Application to Belgium

Author(s): 
Victor GinsburghLudo Van der Heyden

Publication Date: August 1984

Pages: 29

Abstract: 

This paper concerns an application to the Belgian economy of general equilibrium analysis in the presence of downward real wage rigidities. The model aims at explaining the short-run impact of recent income and exchange policies upon employment in Belgium. Mathematical programming techniques are used to compute equilibria.