Unemployment equilibria and input prices: Theory and evidence from the United States
UNSPECIFIED. (1998) Unemployment equilibria and input prices: Theory and evidence from the United States. REVIEW OF ECONOMICS AND STATISTICS, 80 (4). pp. 621-628. ISSN 0034-6535Full text not available from this repository.
The paper develops an efficiency-wage model in which input prices affect the equilibrium rate of unemployment. We show that a simple framework based on only two prices (the real price of oil and the real rate of interest) is able to explain the main postwar movements in the rate of U.S. joblessness. The equations do well in forecasting unemployment many years out of sample, and provide evidence that the oil-price spike associated with Iraq's invasion of Kuwait appears to be a component of the "mystery'' recession that followed.
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HC Economic History and Conditions
H Social Sciences
|Journal or Publication Title:||REVIEW OF ECONOMICS AND STATISTICS|
|Publisher:||M I T PRESS|
|Official Date:||November 1998|
|Number of Pages:||8|
|Page Range:||pp. 621-628|
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