Labour Market Adjustment: Microeconomic Foundations of Short-run Neoclassical and Keynesian Dynamics
Cambridge University Press, 6/1/2009
EAN 9780521106061, ISBN10: 0521106060
Paperback, 272 pages, 21.6 x 14 x 1.7 cm
Language: English
The main purpose of this book is to develop a general theoretical framework within which it is possible to analyse the interaction of markets in disequilibrium. It considers optimal firm and household behaviour in a dynamic sequence of the labour and commodity markets when there is imperfect information about wage offers and the supply price of labour. The study is mainly theoretical but several empirical phenomena are shown to have an important interpretation within the framework of the model. Models of individual behaviour dealt with in the book increase our understanding of the working of an economic system out of equilibrium by providing the foundation for such dynamic processes as the Keynesian multiplier and the Phillips curve. The analysis points to a short-run dynamic process which exhibits Keynesian features when involuntary unemployment coexists with frictional unemployment and Neoclassical features when involuntary unemployment falls to a very low level.
1. Introduction
Part I. Producers
2. The supply of labour to the firm
3. Production and the demand for labour
4. Job offers
dynamic properties
5. Changes in the supply of labour and prices
Part II. Workers and Consumers
6. Job search
7. Consumption and savings
8. Interactions between consumption and job search
9. Job search
dynamic properties I
10. Job search
dynamic properties II
11. Unemployment and on-the-job search
12. Participation and job search
Part III. Market Interaction
13. Short-run equilibrium and long-run extensions
14. Towards a short-run macrodynamics
15. Conclusion
References
Index.