Equilibrium Unemployment and Excess Capacity in Steady-State and Growth Cycles
Bibliographic Data
| ID | 9724507 |
|---|---|
| Authors | Robert M Costrell (corresponding author) |
| Year | 1984 |
| Volume | 51 |
| Issue | 201 |
| Pages | 69 |
| Publication date | 1984-02-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | JSTOR (PUBLISHER) |
| DOI | 10.2307/2553935 |
| OpenAlex | W2002572143 |
| Language | EN |
| References cited | 4 |
This paper is addressed to the interpretation of the average or trend rate of unemployment. Many contemporary macroeconomists provide a nominal interpretation of that rate: the trend or natural rate of unemployment is understood to be that rate which is consistent with a stable rate of inflation. Another, distinctly minority, strand of thought gives a real interpretation of unemployment: the trend rate is understood to be that rate which is consistent with a stable distribution of income between capital and labour. The present contribution is of the latter variety. The seminal work in this vein is R. M. Goodwin's (1967) paper, A Growth Cycle. Although his paper focused on the cyclical behaviour of employment, profit and wage rates, we may briefly consider the steady state implicit in his type of model. The steady-state profit and wage rates, r* and w* , are given by the solution to the Harrod equation, as in most brands of growth theory: s{r*(w*)}
Capacity utilization · Economics · Labour economics · Macroeconomics · Steady state (chemistry) · Unemployment · Chemistry · Economic theories and models · Economic Theory and Policy · Monetary Policy and Economic Impact
| Citation velocity | historical |
|---|---|
| Highly cited | No |