Underinvestment and Unemployment: The Double Hazard in the Euro Area
JOURNAL ARTICLE
Cite JOURNAL ARTICLE
Style
Format
Underinvestment and Unemployment: The Double Hazard in the Euro Area
Christodoulakis, Nicos | Axioglou, Christos
Applied Economics Quarterly, Vol. 63 (2017), Iss. 1 : pp. 49–80
6 Citations (CrossRef)
Additional Information
Article Details
Pricing
Author Details
Nicos Christodoulakis, Athens University of Economics and Business; Hellenic Observatory, London School of Economics. Address for correspondence: 76, Patission Street, Athens, Greece, 10434.
Christos Axioglou, Fiscal Council, Ministry of Finance, Greece.
Cited By
-
The Role of the Public Sector in Building Social and Economic Resilience
The Role of Public Sector Wage Rates in the Determination of Labour Share
Ioannidis, Yiorgos | Giakoulas, Dimitris | Pappas, Anastasios2024
https://doi.org/10.1007/978-3-031-67702-1_5 [Citations: 0] -
The cost of mitigation revisited
Köberle, Alexandre C. | Vandyck, Toon | Guivarch, Celine | Macaluso, Nick | Bosetti, Valentina | Gambhir, Ajay | Tavoni, Massimo | Rogelj, JoeriNature Climate Change, Vol. 11 (2021), Iss. 12 P.1035
https://doi.org/10.1038/s41558-021-01203-6 [Citations: 46] -
Non-Performing Loans in the Euro Area: Are Core-Periphery Banking Markets Fragmented?
Anastasiou, Dimitrios | Louri, Helen | Tsionas, Efthymios G.SSRN Electronic Journal , Vol. (2016), Iss.
https://doi.org/10.2139/ssrn.2868777 [Citations: 11] -
What Determines Unemployment in the Long Run? Band Spectrum Regression on Ten Countries 1913-2016
Hegelund, Erik | Taalbi, JosefSSRN Electronic Journal , Vol. (2022), Iss.
https://doi.org/10.2139/ssrn.4113071 [Citations: 0] -
Population aging and structural over/underinvestment
Brůna, Karel | Pour, JiříEconomic Change and Restructuring, Vol. 56 (2023), Iss. 4 P.2339
https://doi.org/10.1007/s10644-023-09517-5 [Citations: 1] -
What determines unemployment in the long run? Band spectrum regression on ten countries 1913–2016
Hegelund, Erik | Taalbi, JosefStructural Change and Economic Dynamics, Vol. 64 (2023), Iss. P.144
https://doi.org/10.1016/j.strueco.2022.11.009 [Citations: 2]
Abstract
An alarming legacy of the austerity programs in the euro area is the vast disinvestment that has taken place over the recent years, and especially so in the peripheral economies. Unless it is quickly reversed, disinvestment not only hinders long-term growth but also undermines the prospects of a gradual reduction of unemployment and risks further imbalances in, and threats to, the monetary union. Combining a neoclassical Diamond model with labour market imperfections, the paper shows that unemployment is a function of capital investment under either CES or Cobb-Douglas production functions. A cross-section estimate for the euro area economies confirms the theoretical findings.