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Macro&Entrepreneurship
  • Romar Correa
Romar Correa

Corresponding Author:[email protected]

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Abstract

The fiscal authorities coordinate on the ‘labor leg’ of the Leontief production function in a firm optimization problem. The ‘government production function’ complements labor in the ‘private’ production function. The monetary authorities, à la the theory of the monetary circuit, directly or through the mediation of banks underwrite the employment contract. In an alternative scenario, workers are self-employed entrepreneurs. We compare and contrast the relationships in the former model with the atomistic market of the latter.