The Labor Market And Business Cycle Theories

Author : Piero Ferri,Edward Greenberg
Publisher : Springer Science & Business Media
Page : 197 pages
File Size : 43,5 Mb
Release : 2012-12-06
Category : Political Science
ISBN : 9783662008317

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The Labor Market and Business Cycle Theories by Piero Ferri,Edward Greenberg Pdf

Interest in business cycles has had its 'ups and downs'. After a period of almost steady state growth and of economic tranquility, when the business cycle seemed to be obsolete, the turbulence of the 70s and 80s has contributedto a renewed interest in the topic. Important analytical and methodological innovations have also favored the present abundance of contributions. Four innovations are of particular importance: i. microfoundations ii. nonlinearities iii. stochastic variables iv. real aspects. Both Classical macroeconomics and new-Keynesian approaches seem to share these characteristics, which apply both to endogenous and exogenous explanations of the cycle. The distance separating the newer literature from its forebears seems vast. Previously, cycle theory was characterized by a macro approach and utilized nonlinearities either through piecewise 'linear models or with the aid of Classical theorems in the field of dynamic systems. To consider and to compare the old and the new literature on business cycles is one of the goals of this book. To narrow the distance separating them is another goal of this research. We do not try to bridge it, but rather to revisit the former tradition with new tools. Finally, a particular emphasis is put on the 'ceilings and floors' type of literature. One of us has written a D. Phil. thesis with Sir John Hicks, and both have worked with H. P. Minsky. Hicks, along with Goodwin, introdu. ced the concept of ceilings and floors into business cycle analysis, and Minsky made important contributions to the area.

Author : Robert Shimer
Publisher : Princeton University Press
Page : 192 pages
File Size : 43,5 Mb
Release : 2010-04-12
Category : Business & Economics
ISBN : 9781400835232

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Labor Markets and Business Cycles by Robert Shimer Pdf

Labor Markets and Business Cycles integrates search and matching theory with the neoclassical growth model to better understand labor market outcomes. Robert Shimer shows analytically and quantitatively that rigid wages are important for explaining the volatile behavior of the unemployment rate in business cycles. The book focuses on the labor wedge that arises when the marginal rate of substitution between consumption and leisure does not equal the marginal product of labor. According to competitive models of the labor market, the labor wedge should be constant and equal to the labor income tax rate. But in U.S. data, the wedge is strongly countercyclical, making it seem as if recessions are periods when workers are dissuaded from working and firms are dissuaded from hiring because of an increase in the labor income tax rate. When job searches are time consuming and wages are flexible, search frictions--the cost of a job search--act like labor adjustment costs, further exacerbating inconsistencies between the competitive model and data. The book shows that wage rigidities can reconcile the search model with the data, providing a quantitatively more accurate depiction of labor markets, consumption, and investment dynamics. Developing detailed search and matching models, Labor Markets and Business Cycles will be the main reference for those interested in the intersection of labor market dynamics and business cycle research.

Author : Piero Ferri,Edward Greenberg
Publisher : Springer Science & Business Media
Page : 172 pages
File Size : 52,6 Mb
Release : 2012-12-06
Category : Business & Economics
ISBN : 9783642772412

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Wages, Regime Switching, and Cycles by Piero Ferri,Edward Greenberg Pdf

The initial purposes of this book were to update and extend the discussion and the results presented ill our previous book, The Labor Market and Business Cycle Theories. Our 1990 article, which appeared in The Journal of Economic Behavior and Organization, represented a first step in this direction. The consequences of this effort have materialized in a number of new chapters that has led de facto to a new book, in which the surviving parts have been largely revised. The 1989 book was too mathematically oriented for many Keynesians and post Keynesians to be fully appreciated and insufficiently microfounded for both new classicals and new-Keynesians to be warmly accepted, yet we received positive and encouraging comments, and it was sold out very quickly. It was an attempt to dis cuss dynamics in Keynesian terms, based on a double assumption that maintains its validity-that both economic facts and analytical and methodological innova tions had contributed to a renewed interest in business cycles, which over time has had its "ups and downs." Since then, many more articles and books have appeared, stressing in particular the role of microfoundations and of nonlinearities in shaping business cycle theory.

Author : Lawrence J. Christiano
Publisher : Unknown
Page : 78 pages
File Size : 51,7 Mb
Release : 1988
Category : Business cycles
ISBN : PSU:000015579812

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Is Theory Really Ahead of Measurement? by Lawrence J. Christiano Pdf

In the l93Os, Dunlop and Tarshis observed that the correlation between hours and wages is close to zero. This classic observation has become a litmus test by which macroeconomic models are judged. Existing real business cycle models fail this test dramatically. Based on this result, we argue that technology shocks cannot be the sole impulse driving post-war U.S. business cycles. We modify prototypical real business cycle models by allowing government spending shocks to influence labor market dynamics in a way suggested by Aschauer (1985), Barro (1981, 1987) and Kormendi (1983), This modification can, in principle, bring the models into closer conformity with the data. While the empirical performance of the models is significantly improved, they still fail to account for the Dunlop-Tarshis observation. Accounting for that observation will require further advances in model development. Consequently, we conclude that theory is behind, not ahead of, business cycle measurement.

Author : Robert J. Barro
Publisher : Unknown
Page : 358 pages
File Size : 50,8 Mb
Release : 1989
Category : Business & Economics
ISBN : UOM:39015014556875

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Modern Business Cycle Theory by Robert J. Barro Pdf

The new classical approach to macroeconomics, which assumes that people gather and use economic information efficiently, has been the most important theoretical advance since the Keynesian revolution of the 1930s. This book surveys the major contributions of the "second generation" of proponents of the new classical approach, emphasizing real business cycle theories and applying them to a variety of phenomena. The chapters include expositions of growth theory, real models of business fluctuations, the informational role of prices, consumption, fiscal policy, rules versus discretion in monetary policy, time consistency and policy, and monetary models. Although the chapters are aimed at advanced undergraduate- and graduate-level students, they will also be of interest to researchers who are looking for a compact and original exposition of the new classical macroeconomics.

Author : Victor Zarnowitz
Publisher : University of Chicago Press
Page : 614 pages
File Size : 49,5 Mb
Release : 1992-06-15
Category : Business & Economics
ISBN : 9780226978901

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Business Cycles by Victor Zarnowitz Pdf

Victor Zarnowitz has long been a leader in the study of business cycles, growth, inflation, and forecasting. These papers represent a carefully integrated and up-to-date study of business cycles, reexamining some of his earlier research as well as addressing recent developments in the literature and in history. In part one, Zarnowitz reviews with characteristic insight various theories of the business cycle, including Keynesian and monetary theories as well as more recent rational expectations and real business cycle theories. In doing so, he examines how the business cycle may have changed as the size of government, the exercise of fiscal and monetary policies, the openness of the economy to international forces, and the industrial structure have evolved over time. Emphasizing important research from the 1980s, Zarnowitz discusses in part two various measures of the trends and cycles in economic activity, including output, prices, inventories, investment in residential and nonresidential structures, equipment, and other economic variables. Here the author explores the duration and severity of U.S. business cycles over more than 150 years, and evaluates the ability of macro models to simulate past behavior of the economy. In part three the performance of leading, coincident, and lagging indicators is described and assessed and evidence is presented on the value of their composite measures. Finally, part four offers an analysis of the degree of success of large commercial forecasting firms and of many individual economists in predicting the course of inflation, real growth, unemployment, interest rates, and other key economic variables. Business Cycles is a timely study, certain tobecome a basic reference for professional forecasters and economists in government, academia, and the business community.

Author : Ms.Valerie Cerra,A. Fatas,Ms.Sweta Chaman Saxena
Publisher : International Monetary Fund
Page : 50 pages
File Size : 45,9 Mb
Release : 2020-05-29
Category : Business & Economics
ISBN : 9781513536996

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Hysteresis and Business Cycles by Ms.Valerie Cerra,A. Fatas,Ms.Sweta Chaman Saxena Pdf

Traditionally, economic growth and business cycles have been treated independently. However, the dependence of GDP levels on its history of shocks, what economists refer to as “hysteresis,” argues for unifying the analysis of growth and cycles. In this paper, we review the recent empirical and theoretical literature that motivate this paradigm shift. The renewed interest in hysteresis has been sparked by the persistence of the Global Financial Crisis and fears of a slow recovery from the Covid-19 crisis. The findings of the recent literature have far-reaching conceptual and policy implications. In recessions, monetary and fiscal policies need to be more active to avoid the permanent scars of a downturn. And in good times, running a high-pressure economy could have permanent positive effects.

Author : Pascal Bridel,Muriel Dalpont
Publisher : Routledge
Page : 240 pages
File Size : 53,6 Mb
Release : 2017-10-02
Category : Business & Economics
ISBN : 9781317381976

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Business cycle theory as a basis for economic policy by Pascal Bridel,Muriel Dalpont Pdf

This book aims to start a debate on the relationship between economic theory – and more precisely business cycle theory – and economic policy, emphasising the diversity of views on economic policy which characterised older periods, in contrast to the homogeneity of the analysis and diagnosis provided by current business cycles developments. Since the 1970s, economic theorists excluding any economic policy interventions and favouring strictly supply-side economic policies have gained a growing influence. The development of Equilibrium Business Cycles theories coincides with the collapse, at least in academic circles, of the Keynesian consensus favouring stabilization policies. The alternative approach which emerged was based on an a priori hypothesis about the stability of the economy – or at least on its remarkable ability to stabilize itself. The direct consequence of this approach is that any stabilization objective for economic policy is not only misguided but also inefficient. There are many reasons why Keynesian policies ceased to be dominant in theoretical circles, but the most helpful circumstances for the rapid propagation of a new revolutionary theory is certainly the existence of an established orthodoxy, clearly inconsistent with the most salient facts of reality. This book offers a sample of different theoretical approaches to business cycles, examining their respective views on economic policy with the objective of understanding business cycles that have been lost, and identifying those views which explain fluctuations and the way we conceive economic policy. This book was originally published as a special issue of The European Journal of the History of Economic Thought.

Author : Thomas F. Cooley
Publisher : Princeton University Press
Page : 452 pages
File Size : 50,6 Mb
Release : 1995-02-26
Category : Business & Economics
ISBN : 069104323X

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Frontiers of Business Cycle Research by Thomas F. Cooley Pdf

This introduction to modern business cycle theory uses a neoclassical growth framework to study the economic fluctuations associated with the business cycle. Presenting advances in dynamic economic theory and computational methods, it applies concepts to t

Author : Finn E. Kydland
Publisher : Edward Elgar Publishing
Page : 556 pages
File Size : 46,9 Mb
Release : 1995
Category : Business & Economics
ISBN : UFL:31262054238299

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Business Cycle Theory by Finn E. Kydland Pdf

This volume is a collection of key articles on modern business cycle theory. Fundamental to business cycle theory is the estimation of the role played by different impulses or shocks for aggregate fluctuations, and identifying the mechanisms by which these impulses propagate over time to create the cycles we observe. Business Cycles Theory is divided into three parts. Part I deals with issues of measurement and methodology and describes empirical business cycle regularities. Parts II and III centre around the study of real and nominal shocks and impulses.

Author : Ray Loveridge,A.L. Mok
Publisher : Springer Science & Business Media
Page : 261 pages
File Size : 41,5 Mb
Release : 2012-12-06
Category : Business & Economics
ISBN : 9781461599586

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Theories of labour market segmentation by Ray Loveridge,A.L. Mok Pdf

The objectives of this book are: to review and develop a framework of key analytical concepts in the field of labour market segmentation; to develop and test these concepts against available data; to indicate weaknesses in the data in the light of the analysis; to offer a critique of manpower policies in some European countries in the light of the foregoing analysis; and to indicate areas of further research. The authors hope that this survey of the literature and the comments that accompany it will prove useful to policy makers and students alike. The authors woulp like to acknowledge the role of the Directorate General for Social Affairs of the European Community, Brussels, in initiating and supporting the production of this volume of criticism and discussion. We have especially appreciated the role of David White, on whose advice we came to rely in directing our critique upon the application of segmental theory to matters of labour market policy. Others whose help and advice we have relied on are John Morley, also of the European Community, Peta Small, who typed the several drafts, and our respective wives and families whose encouragement and discreet silences enabled us to get past the nth draft.

Author : Stephen Millard,Andrew Scott,Marianne Sensier
Publisher : Unknown
Page : 29 pages
File Size : 43,9 Mb
Release : 1997
Category : Business cycles
ISBN : 0853287147

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The Labour Market Over the Business Cycle by Stephen Millard,Andrew Scott,Marianne Sensier Pdf

Author : John Maynard Keynes
Publisher : Springer
Page : 404 pages
File Size : 41,7 Mb
Release : 2018-07-20
Category : Business & Economics
ISBN : 9783319703442

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The General Theory of Employment, Interest, and Money by John Maynard Keynes Pdf

This book was originally published by Macmillan in 1936. It was voted the top Academic Book that Shaped Modern Britain by Academic Book Week (UK) in 2017, and in 2011 was placed on Time Magazine's top 100 non-fiction books written in English since 1923. Reissued with a fresh Introduction by the Nobel-prize winner Paul Krugman and a new Afterword by Keynes’ biographer Robert Skidelsky, this important work is made available to a new generation. The General Theory of Employment, Interest and Money transformed economics and changed the face of modern macroeconomics. Keynes’ argument is based on the idea that the level of employment is not determined by the price of labour, but by the spending of money. It gave way to an entirely new approach where employment, inflation and the market economy are concerned. Highly provocative at its time of publication, this book and Keynes’ theories continue to remain the subject of much support and praise, criticism and debate. Economists at any stage in their career will enjoy revisiting this treatise and observing the relevance of Keynes’ work in today’s contemporary climate.

Author : James Hartley,Kevin Hoover,Kevin D. Salyer
Publisher : Routledge
Page : 684 pages
File Size : 52,9 Mb
Release : 2013-07-04
Category : Business & Economics
ISBN : 9781134694792

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Real Business Cycles by James Hartley,Kevin Hoover,Kevin D. Salyer Pdf

Real Business Cycle theory combines the remains of monetarism with the new classical macroeconomics, and has become one of the dominant approaches within contemporary macroeconomics today. This volume presents: * the authoritative anthology in RBC. The work contains the major articles introducing and extending the theory as well as critical literature * an extensive introduction which contains an expository summary and critical evaluation of RBC theory * comprehensive coverage and balance between seminal papers and extensions; proponents and critics; and theory and empirics. Macroeconomics is a compulsory element in most economics courses, and this book will be an essential guide to one of its major theories.

Author : Pierre-Yves Henin
Publisher : Springer Science & Business Media
Page : 42 pages
File Size : 54,6 Mb
Release : 1995-06-13
Category : Business & Economics
ISBN : 3540592296

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Advances in Business Cycle Research by Pierre-Yves Henin Pdf

Models derived from the Real Business Cycle perspective have recently taken a major place in business cycle research. The papers in this present volume bring three contributions to this research programme: A critical evaluation of the canonical RBC models, new elements of empirical relevance, based on comparative calibration and testing, and new specifications, at the frontier of business cycle research, coping with non walrasian features, contracts and nominal rigidities, unemployment and growth.