Dr Ante Farm

Affiliations:
Email: Ante.Farm@sofi.su.se
Phone: +468162311
Address: SOFI. Stockholm University, SE-10691 Stockholm, Sweden


Description

My current activities include research on the effect of matching problems on employment and hence also unemployment. I focus in particular on the distinction between vacancies as ‘job openings’ (recruitment processes), which are measured in traditional vacancy statistics, and vacancies as ‘unfilled jobs’ (unmet labour demand), which have not been measured until recently. After a long break I have also resumed research on price formation in markets where buyers take prices as given and prices are set by sellers, as in most consumer markets. Some basic results are reported in papers below.

I am also writing a summary and extension of my findings on pricing, employment and unemployment since my thesis in economics in 1986. A preliminary version is available as a SOFI Working Paper below, entitled "Basic Macroeconomics".

Pricing and Price Competition in Consumer Markets
Abstract: This paper offers a simple model of the price mechanism in markets where buyers take prices as given and prices are set by sellers, as in most consumer markets. It explains price competition by arguing that a market price goes down if and only if a price cut appears profitable to a firm even if its competitors follow suit. It also explains why markets do not always clear, that is, why production can be restricted by sales and not capacity at prices set by firms. (Article below)

Pricing and production in consumer markets where sales depend on production
Abstract: Assuming that a firm's sales are proportional to its production, this paper shows that a price leader will set a price which maximizes its industry's revenues in markets with many small firms. (Article below)

Labour Demand and Product Demand
Abstract: This paper shows that the traditional model of labour demand in a firm is incomplete and that a complete model implies that the determinants of labour demand include the demand for the firm’s products. (PDF below)

Measuring the Effect of Matching Problems on Unemployment
Abstract: This paper shows how matching problems reduce employment – and hence also increase unemployment – by creating a gap between labour demand and employment. It also shows how this gap can be measured by unfilled jobs (unmet demand) as distinct from job vacancies (recruitment processes) and reports results from a new type of vacancy survey which measures both. In fact, while a shift of the matching function indicating longer recruitment times suggest increasing matching problems, it is only the measurement of unfilled jobs which can verify this and at the same time quantify the effect on unemployment. (Forthcoming in International Labour Review,
https://doi.org/10.1111/ilr.12095)



Last updated on 2018-08-08 at 14:01