General equilibrium macroeconomic models of unemployment: can they explain the unemployment path in the OECD?

Article Abstract:

The general equilibrium models formulated by Phelps, Layard and Nickell and Sarantis were ineffective in explaining the occurrence and persistence of high unemployment among Organization for Economic Cooperation and Development (OECD) countries. All of the general equilibrium models were found to be incapable of fully explaining the 7.1 percentage rise in the unemployment rate of OECD nations from 1973 to 1993. Specifically, the models of Phelps and Layard and Nickell were only able to illustrate the 1 to 2 percent rise, out of 7.1% increase, in the unemployment rate.

Organization for Economic Cooperation and Development

---

Keynesian economic policies for the new millenium

Article Abstract:

A new approach to economic policy is presented as an extension of traditional Keynesian theories which assert that unemployment will occur in a lassez faire market economy and that a more equitable distribution of market power, income, and wealth is advantageous. It is argued that government intercession is a prerequisite in gaining full employment. It also recognizes the need to address issues such as trade unions and inflationary factors through policy.

Supply-side economics

---

New Keynesianism and aggregate economic activity

Article Abstract:

Traditional Keynesian economic models have been criticized for the lack of microeconomic grounds to explain labor market phenomena in which workers are unable to secure jobs while demanding lower wages than employed workers. New Keynesians address the limitations of traditional Keynesian economics by treating real wages as rigid. They assert that aggregate output and employment levels are significantly influenced by aggregate product-demand shocks.

Similar abstracts:

• Abstracts: Controversy: the macroeconomics of unemployment in the OECD. Quantifying the Uruguay Round
• Abstracts: External policy developments. Justice and home affairs
• Abstracts: U.S. sanctions on Iran: how long will they last? United States sanctions against Iran: current status and future direction
• Abstracts: The demand for M1 in a large macroeconomic system: evidence from cointegration analysis
• Abstracts: Economic growth with negative externalities in innovation. Inflation and capital accumulation in a two-sector cash-in-advance economy

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.