Involuntary Unemployment: The Elusive Quest for a Theory

Book Description

P The Great Depression of the 1930s with its dramatic unemployment rates was one of the most striking economic events of the past century. It shook economists' beliefs in the existence of self-adjusting forces and prompted Keynes to write his masterwork, The General Theory of Employment, Interest and Money. /P P Involuntary unemployment was the central concept of Keynes' book. However, after having been considered the sine qua non of economics for decades, it has gradually disappeared from textbooks and research. This book recounts and ponders this demise, asking whether the abandonment of the concept of involuntary unemployment is the manifestation of some inner defect of recent economic theory or is rather due to some intrinsic weakness of the concept itself, which makes it of little use when it comes to economic theorising. /P P In order to disentangle these issues, the author critically reviews the different explanations of involuntary unemployment that have been offered from Keynes up to the end of the 1980s. After consideringThe General Theory, the author studies the works of pioneering macroeconomists such as Hicks, Modigliani, Lange, Leontief, Tobin, Klein and Hansen. An examination of the 're-appraisal of Keynes' and of the so-called disequilibrium school is followed by a discussion of Friedman's and Lucas' anti-Keynesian attack. The final part of the book investigates a series of models purporting to revive the Keynesian project, namely implicit contract, efficiency wages, insider-outsider, coordination failures, and imperfect competition. /P

Customer Reviews:

De Vroey skips the mathematical modeling in chs.10,20,and21.......2005-03-07

Michel De Vroey(V)arrives at the following conclusion in his book on Keynes's theory of effective demand and involuntary unemployment:"...Two main lines of argumentation are developed by Keynes.The first concerns the working of the labour market.Keynes claims...that wage-earners are unable to fix the market-clearing real wage in spite of their ability to fix the nominal wage...Keynes's second line of argumentation consists of claiming that involuntary unemployment is caused by a deficiency in effective demand.After an in-depth examination of these two claims,I come to the conclusion that neither of them stands up....In sum,no valid explanation of involuntary unemployment remains after Keynes'reasoning errors have been straightened out".(De Vroey,2004,p.5).Further sections of the book examine how the involuntary unemployment concept was used,first, in combination with IS-LM models by Keynesian economists(Hicks,Hansen,Tobin ,Klein,and Modigliani),second,by the original disequilibrium Keynesians(Patinkin,Clower,and Leijonhufvud)and their successors(Barro,Grossman,Dreze,Benassy,and Malinvaud),third,the Friedman-Lucas(F-L) critique of the concept of involuntary unemployment,fourth,New Keynesian counter arguments to F-L based on implicit contracts theory,menu cost models ,efficiency wage models,insider-outsider theory ,coordination failures and imperfect competition.V essentially ignores the nonsymmetric,incomplete,and imperfect information approach of Stiglitz which,while inferior to Keynes's own c coefficient model in chapter 26 of the A Treatise on Probability(1921) that Keynes used informally on pp.239-241 of The General Theory(1936),comes closest to Keynes's approach.V summarizes in his last chapter by essentially repeating the conclusion quoted above from his introductory chapter. V spends all of the second part of his book supposedly analyzing Keynes's analysis of his concept of involuntary unemployment as it was developed within the framework of his theory of effective demand.Unfortunately,V completely fails to consider the mathematical models presented by Keynes in chapter 10(the Y-multiplier model of actual aggregate demand where Y=C+I),chapters 20 and 21(the D-Z model consisting of a)D=f(N)=pO,the expected aggregate demand function,where p is an expected price and O=F(N)is an aggregate production function, defined as such on p.283 of the GT,(b)Z=g(N)=P +wN,the expected aggregate supply function,where P is future,expected profit,w is the money wage,either fixed or variable, and N is the aggregate amount of employment,(c)the aggregate supply curve, D=Z,which is a locus of the set of all possible expected price-profit combinations,a different possible employment level corresponding to each member of the set.The aggregate supply curve,D=Z, automatically specifies a set of stable multiple equilibria,all of which satisfy the necessary first order and sufficient second order conditions for a profit maximum derived from an optimization problem.Only one of the elements of this set will represent a full employment equilibrium.All of the other feasible points represent unemployment equilibriums,which Keynes designated as representing involuntary unemployment.In 1940,Keynes expanded his model' s range of application informally so as to incorporate points of overemployment in his How to Pay for the War.)and the appendix to chapter 19,where Keynes compared his model,theory,and results to the model,theory,and results derived by A C Pigou in Part II,chapters 8-10,pp.86-102,of The Theory of Unemployment(1933).Instead,V studies chapters 2,3,and 19 of the GT while ignoring chapters 10,20,21,and the appendix to chapter 19 of the same book.V's approach to "reading" the GT is based on five canards passed down to historians of economic thought and academic specialists in economic thought.The first canard is the claim made by Richard Kahn to Robert Skidelsky,who accepted it at face value,that Keynes was a poor mathematician by 1927.The second canard is the claim made by Joan Robinson that Gerald Shove told her that Keynes had never taken the twenty minutes necessary to master the theory of value.Naturally, Kahn(along with A.Robinson) claimed that Shove told him the same thing.The third canard was Dennis Robertson's claim,made in a 1955 article(with an error filled appendix by Harry Johnson) in the Economic Journal that was part of an error filled exchange over the meaning of Keynes's aggregate supply function between Robertson, De Jong and Ralph Hawtrey ,that pages 24-30 of the GT(chapter 3) contains the important theoretical core that is central to an understanding of Keynes's theory of effective demand,despite Keynes's own assessment that chapter 3 was merely an introductory guide or outline of his theory that might be unintelligible until later chapters filled in all the missing analysis.The fourth canard was Johnson's claim that Z=pO(instead of the correct D=pO).The fifth canard was that,according to Robertson,D=C+I(instead of the correct Y=C+I).A mathematically literate reader of this review,who can differentiate and integrate, can easily duplicate any and all of the mathematical results obtained by Keynes in chapters 20 and 21.The major result is that the optimality condition for the labor market,making the standard assumption of decreasing returns to labor in the short run ,is determined in the commodity(output)market by the condition that w/p=mpl/(mpc+mpi),as opposed to the classical and neoclassical result that equilibrium in the labor market is determined independently of the commodity market by the condition w/p=mpl,where mpl is the marginal product of labor,mpc is the marginal propensity to spend on consumption goods andmpi the marginal propensity to spend on investmant goods.Only in the special case where mpc+mpi =1 will the neoclassical result(no involuntary unemployment)hold.I am now able to show why Keynes's two lines of argumentation are correct and why De Vroey and a host of other economists,who have accepted one or more of the five canards listed above,are incorrect in their reasoning.First,it is impossible for labor,in the aggregate ,to lower their money wage,w,as long as mpc+mpi <1.Second,there is a deficiency of aggregate demand by definition as long as mpc+mpi <1.There is nothing wrong with Keynes's reasoning,which follows strictly from a mathematical analysis of an aggregated economy operating under conditions of pure competition(KEYNES,1936)or free competition(PIGOU,1933).As pointed out by Keynes in the appendix to chapter 19 of the GT,the neoclassical analysis is missing an equation.That missing equation is the Y-multiplier model of chapter 10 of the GT.Of course,one can simply assume that mpc+mpi =1,just as the economist,who was taking a cruise with a physicist and a chemist and ends up on a deserted island after their ship sinks, assumes a can opener.

Involuntary unemployment: The elusive quest for a theory [A book review from: European Journal of Political Economy]

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Involuntary unemployment: The elusive quest for a theory [A book review from: European Journal of Political Economy]
C.T. Kreiner
Manufacturer: Elsevier
ProductGroup: Book
Binding: Digital
ASIN: B000RR4ZQG

Book Description

This digital document is a journal article from European Journal of Political Economy, published by Elsevier in . The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

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Customer Reviews:

Traditional Approaches Infused with Web Reality.......2002-12-03

Perhaps the major failure of the Internet Boom was its attempt to fit business models to technology. Had analysts fit the technology to the business model, we may have had a different experience.

A major theme of this book is that unless one keeps a clear eye on the four principle - business, people, process and technology - business drivers, it is difficult, if not impossible, to steer a course towards success.

There is no escaping the fact the Internet merely enables a more well-planned approach to securing a strategic position in a competitive market. It is not a one stop solution. The book demonstrates exactly how to integrate all four elements to deliver maximum value.

The authors conclude their book with a case study that illustrates the principles they espouse. In their appendix, they include interest assessment and change-management templates along with an interesting chapter on project management.

This book aligns the traditional mainframe approaches of reliability, availability and support with the realities of the web. It is worth every penny of its purchase price.

Finally! Updated processes aligned to modern environments.......2002-10-07

Having read (and reviewed) the eleven previous books in the Enterprise Computing series my expectations for this book were high - and completely met.

Like the other books in the series the structure and content covers people, process and technology, with an emphasis on business and stakeholder requirements. Unlike the other books, which are steeped in traditional approaches to reliability, availability and support processes that were born in the mainframe environment, this one gives those proven processes a facelift and aligns them to the realities of web time and pressures. Not that the parent processes were flawed - they were not agile enough to support the rapidly changing technical and business requirements that are constantly emerging. However, the best part of this book is that it never loses sight of business imperatives, which is something that needs to be reinforced in the minds of IT operations and management staff.

The book starts with a detailed discussion of business drivers, then covers the four essential dimensions of the web infrastructure framework. This is a blend of business- and technical-oriented actions, which includes understanding all factors and drivers, planning and phased implementation, value chain analysis and agile processes. In fact, the one aspect of the earlier books that I lamented - forcing old (but proven and necessary) processes, such as change control into web-based and e-business environments was not working. While the processes are essential, they needed streamlining, which is something many of us who specialize in service support and delivery have been grappling with. This book provides streamlined approaches that meet the requirements of contemporary environments, while maintaining the integrity of the processes themselves. This alone is reason enough to read this book.

The book ends with a case study that illustrates the key points made in the main body of the book, and also provides excellent material in the four appendices (including change control templates).

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Web-Based Infrastructures : A 4-D Framework (Harris Kern's Enterprise Computing Institute Ser.)
Sanmay; Smith, Cooper Mukhopadhyay
Manufacturer: Prentice Hall PTR
ProductGroup: Book
Binding: Paperback
ASIN: B000OHG6FW

Customer Reviews:

Great Business and Personal Success Book.......1999-05-08

I'm always on the lookout for new business/self-help books to recommend to my clients. They must provide quality information, be easy to read and follow, and inspire and motivate change. This one fits the bill perfectly. Great exercises throughout make it experiential as well as informative. You get that she knows what she's talking about and has been there herself. I also loved her upbeat approach and humor. It's like having a good friend holding your hand. I liked it and will continue to recommend it.

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A LOT better that I expected!

How to Run a Successful Meeting in Half the Time: How to Have a Successful Meeting in Half the Time
Frank
Manufacturer: Pocket
ProductGroup: Book
Binding: Paperback

General | Business & Investing | Subjects | Books
Running Meetings & Presentations | Skills | Business & Investing | Subjects | Books
General | Self-Help | Health, Mind & Body | Subjects | Books
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How to Get Your Point Across in 30 Seconds or Less

The One Minute Manager

How to Make Meetings Work!

The 7 Habits of Highly Effective People

Leadership and the One Minute Manager: Increasing Effectiveness Through Situational Leadership

ASIN: 0671726013

Customer Reviews:

A LOT better that I expected!.......2003-01-11

This is a surprisingly useful book. It is a quick read (about an hour or two); the basic format is a question, answer, and illustrative anecdote. I was pleased with the stories presented in the book and picked up a number of pointers. While the book starts out a bit on the obvious side (Q: When should you call a meeting? A: When a meeting is the best way to achieve your objective.), it moves into some though provoking issues such as dealing with interruptions, staggering attendance for optimum use of peoples' time, how to deal with those who want to go into depth on everything, etc. While some of the material on audio/visual material is amusingly out of date, the principles behind them are sound. The corporate world would be better off if everyone read and applied the principles found in this book.

Amazon.com

If your last job search took place more than a year ago, you may be shocked at how widespread online job hunting is today. Pam Dixon reckons that between 40 and 80 percent of employers now search for job candidates online, with millions of jobs being posted via company Web pages and online employment databases. If you know how to use it, the Internet is a magnificent tool for learning what jobs are available, in your field or in fields you may wish to explore, in your neck of the woods or across the country in a region you may not mind relocating to--if only there were a job waiting for you.

Job Searching Online for Dummies is a priceless investment in the job hunt process. Dixon explains new job search trends (such as who is likeliest to succeed in an online job search) and which online job search strategies are most effective. She provides job search engines and professional indexes, discusses résumé privacy, and touches on the tricky issue of whether your current boss may see your résumé online. There are also chapters on formatting an electronic résumé, résumé send-out strategies, how to compose an appropriate electronic cover letter, and doing a bit of pre-interview Internet research, too. Dixon then delves into e-mail protocol, contacting the right people, and using online job databases to your best advantage. There's an Internet directory in back, with 63 pages of worthwhile Web sites, and there's a CD, too, compatible with PC and Mac systems, that contains a clickable list of all the URLs in the directory, an ASCII template for a basic electronic résumé, and BBEdit Lite, a freeware text editor (compatible with Mac OS only) for composing HTML.

Job hunting is still exhilarating, scary, and time-consuming, but if you take advantage of the job search techniques the Internet now offers, the process can be far more efficient and effective. You have nothing to lose, except perhaps the right job. --Stephanie Gold

Book Description

It sure is maddening to feel like you're wasting away in a frustrating or dead-end job. And even if you have a great job, sometimes it's just time to move on. But it's also scary to switch careers. And while getting a great job is always important, it's especially so when that job is the first job of your new career.

Whether you're a seasoned job-hunter or a fresh-faced graduate, you may be surprised to know that online job searching is so widespread now that between 40 and 80 percent of employers search for job candidates online. And while everybody has completely different job-search questions and needs, the second edition of Job Searching Online For Dummies is designed for every job seeker, including

Passive job seekers; those just casually keeping an eye out for new job opportunities
New college graduates
Seasoned pros, who will want to take some time to find a job that fits their skills perfectly
Web novices, who need to get up to speed on using the Internet and figure out what makes an online job search work
Job seekers who need to find a job yesterday, who are ready to start browsing jobs immediately.

In this book, you'll discover everything you need to know to capture the best job possible by using the Web and other online tools, such as e-mail. And you'll uncover tips to

Get organized and develop an online job-search strategy
Put together an efficient, effective electronic resume or Web portfolio
Understand the intricacies of e-mailing and online networking
Navigate cyberspace and online job databases
Improve your job-search odds

Getting a great job doesn't have to be a drudgery. As you plan your job-search strategy, write your resume, and begin to contact employers, know that Job Searching Online For Dummies is here to help you in your journey. It's chock-full of the latest online job searching advice.

Customer Reviews:

Great basic info........2002-01-15

When my father handed me this book, I rolled my eyes. As a "downsized" IT professional, I am intimately familiar with recruiters and online job systems, and fully expected this book to rehash what I already knew. It did.

However, it does contain information that is valuable for beginners. Most of the information is right on the money.

Compared to other online job searching books, this one has a lot of good information, so much so that it risks detracting you from your job search (ignore the information about taking the time to convert your resume into HTML and posting it on your own website).

Want the Job of your dreams, BUY THIS BOOK!.......1999-06-12

This book is so well written and helpful 1000 words would not suffice to tell all the good solid advice it includes. Im retiring from the Army, needless to say my job search strategies were 20 years out of date, UNTIL I read this book. Pam taught me how to write a solid resume for the internet, what sites to post it on, and how to respond to the inquiries I received as well as how to choose the best job from all the offers I would get. I followed the instructions and within 72 hours I was flooded with email on specific jobs in the field I was searching for. Hey, this book saved my life, I'm in Korea and having to conduct a job search from overseas is not something I was looking forward to. The book also contained stellar advice on how to prepare for job interviews, how to research a prospect employer, etc etc etc. AND came with a bonus CD. I checked this book out of the library after buying 2 books on the subject (which were nowhere near as good) but today I'm ordering "Job Searching Online for Dummies" to add to my private collection. Thanks Pam for writing such a helpful book.

A Must for Today's Job-hunters!.......1998-07-02

I spent 3 1/2 months job hunting with no success before I got an Internet connection. Now I have my connection and used this excellent book to get myself up to speed on online job searching. Little did I know how significantly the job search game has changed! This book got me up to speed in very short order. It tells you everything you need to know about "keyword" "Plain-text" and "scannable" resumes for use on the web. It also gives good advice on maintaining internet privacy, (how to avoid getting your identity stolen), which job databases to use and which to avoid, how to reformat your resume for resume databases...

I put my resume on one database, e-mailed a few text-only copies in response to online ads, and my telephone hasn't stopped ringing since! This method, fortunately or unfortunately, is the wave of the future.

There is a CD included in the book, but I found enough information within the book that I didn't need to use it.

Book Description

A comprehensive book detailing how investments,estate plannng, bond calculations, tax laws, budgets,and a whole lot more work. If you understand how they work, your chances of success are far greater! Its your money!

Customer Reviews:

A Must For Anyone Needing Help With Their Money.......2004-01-25

This book really impressed me with the legal help I was searching for. Inheriting money with no knowledge of business, it really helped me with the questions I needed answered and many more I hadn't even thought of. It was ordered for our library and after reading it, I ordered one right away so I could add it to my library and start setting up my estate right. A must for any person needing legal advice and knowledge how to manage his investments.

A very highly recommended primer.......2003-04-19

Plan Ahead: Protect Your Estate And Investments by Frank Eberhart is a highly practical resource for non-specialist general readers seeking to put their personal estate and finances in order, as well as generally protecting their families against the inevitable. Written in no-nonsense, easy-to-understand terms, "user friendly" chapters, Plan Ahead presents straightforward information as to what happens to one's assets when one dies, the effects of the latest tax laws, what the different types of trusts are and how they can be used to ensure financial security for family members, understanding the basics of various types of investments, and a great deal more. Plan Ahead is a very highly recommended primer -- especially for the novice beginner in estate and financial management planning.

Plan Ahead Protect Your Estate and Investments.......2003-02-16

A must read for beginners or advanced, trusts, wills, investments and new tax laws and how they affect you, very impressed!

Book Description

The dynamic changes in the market and the competitive environment demand a reorientation of marketing strategies. Developing and cultivating direct customer relationships and building customer trust are becoming key success factors. With new technologies such as broadband internet and mobile communication, companies are able to create closer dialogs with key customers. These new technologies will have far-reaching consequences for marketing, sales and customer service. This book analyses the enduring changes marketing is undergoing and present the four most important new concepts: Holistic brand management, customer relationship marketing, real-time marketing and multi-channel marketing. The text is accompanied by selected case studies from all over the world.

Customer Reviews:

A little bit buzz, outdated and so so CRM/marketing book .......2006-03-04

As there is no table of content for it on Amazon and so I would like to take the priviledge to type it here for you.

Part 1. Challenge after the Internet Hype
Ch1. E-Business is dead - Long live e-business!
Ch2. Disruptive Technologies are changing our everyday lives
Ch3. The Unknown Customer
Part 2. Brave New Marketing World
Ch4. Customer Experience - Holistic Brand Management
Ch5. Customization - Customer Relationship Marketing
Ch6. Contact - Real-time Marketing
Ch7. Channel - Multi-channel Marketing
Ch8. Management Implications of Marketing 2.0 (An interview with Prof. Roland Berger)

Time flies, so as advancement of IT. Naturally this 2001 German book published in English in 2003 seems a little bit obsolete today. However, I must praise the authors for their accurate and realistic forecast of their future world instead of painting a sci-fi movie picture. Moreover, the abundannce (33) of figures/graphs do add points to it. Nevertheless, I must complain that the book title "marketing 2.0" is gimmicky and something addressing eCRM/loyalty is definitely a much more suitable. In short, simply a so so CRM/marketing book. It wont be a loss if you give it a pass.

Book Description

For anyone interested in understanding the rich networks that operate across Asia--from India to Indochina and the ASEAN states that the greater China trio of the PRC, Hong Kong and Taiwan, and finally the North Asian powerhouse of Japan and Korea.

Customer Reviews:

Insightful!.......2002-02-18

Geoff Hiscock profiles Asia's top 100 billionaires in this fascinating overview of the region's economic landscape. The first half of the book examines the Asian economy, setting the stage for the later depictions of the Asian rich and famous. Hiscook's in-depth reporting shines, as does his conversational style. We from getAbstract recommend this book to all readers with an interest in the global economy.

Good overview of Asia's Wealth and influences.......2001-04-02

Geoff Hiscock book is invaluable for the wealth of information provided in a quick and easy to read overview about those fortune origins, networks, current trends and a list of the 100 richest with a biography for each. It does not only allow to understand region's mentality but have an insight on the major players of the continent. A good start for further study of Asia's business world.

Average customer rating:
U.S. Agriculture Export Programs: Hearing Before the Committee on Agriculture, Nutrition, and Forestry, U.S. Senate

Manufacturer: Diane Pub Co
ProductGroup: Book
Binding: Paperback

Exports & Imports | Economics | Business & Investing | Subjects | Books
General | Business & Investing | Subjects | Books
General | Agricultural Sciences | Science | Subjects | Books
General | Agricultural Sciences | Professional Science | Professional & Technical | Subjects | Books
ASIN: 0756732883

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U.S. agriculture export programs: Hearing before the Committee on Agriculture, Nutrition, and Forestry, United States Senate, One Hundred Sixth Congress, ... export programs, July 18, 2000 (S. hrg)
United States
Manufacturer: For sale by the U.S. G.P.O., Supt. of Docs., Congressional Sales Office
ProductGroup: Book
Binding: Unknown Binding
ASIN: 0160658721

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