On the Existence and Secular Stability of u-v Loci

Bibliographic Data

ID9723459
AuthorsRoger J Bowden (corresponding author)
Year1980
Volume47
Issue185
Pages35
Publication date1980-02-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueEconomica (JOURNAL)
Journal identifiersISSN: 0013-0427 • E-ISSN: 1468-0335
PublisherJSTOR (PUBLISHER)
DOI10.2307/2553166
OpenAlexW2063664478
LanguageEN
Citations received5
References cited4

If we plot observations over time of the rate of unemployment on one axis and the vacancy rate on the other we may expect a scatter diagram of roughly hyperbolic shape. Such a u-v locus has intrigued economists for some time. That both unemployment and vacancies coexist at any point in time has been attributed to various imperfections in the operation of the labour market. In an influential early contribution, Dow and Dicks-Mireaux (1958) noted that the point v = u along the locus could be regarded as indicating zero excess demand for labour. They called the distance from the origin of this point the maladjustment of the labour market. Parallel shifts in the u-v curve indicated changes in maladjustment'. Many subsequent empirical contributions, especially in recent years' have investigated apparent shifts in the u-v relationship and have adduced various different reasons to account for such shifts. It is clear that the u-v locus is widely regarded as a meaningful one, capable of diagnostic use for the identification and analysis of structural changes in the labour market. The use of such a relationship for such purposes implies two prior judgments: (a) that there is at any point in time a stable u-v relationship, one that emerges in a determinate manner out of the dynamic force of market clearing

Econometrics · Economics · Geometry · Locus (genetics) · Macroeconomics · Point (geometry) · Unemployment · Zero (linguistics) · Economic theories and models · Economic Theory and Policy · Mathematics · Monetary Policy and Economic Impact · Philosophy

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