IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v58y1982i4p375-378.html
   My bibliography  Save this article

A Short‐Run Employment Function for Australia: 1911–12 to 1938–39

Author

Listed:
  • DAVID J. SMYTH

Abstract

This paper develops a short‐run employment function model in which the speed of adjustment is positively related to the level of unemployment. The model is fitted to aggregate Australian data for the period 1911–12 to 1938–39, a period which includes the high unemployment years of the 1930s. Full information maximum‐likelihood estimation procedures are used and a log‐likelihood ratio test indicates that the variable speed of adjustment model is to be preferred to a fixed adjustment speed model. The speed of adjustment was quite sensitive to the unemployment rate. The policy conclusion of the paper is that if Australian unemployment rates rise to levels that are unprecedented in the post‐war period, firms may shake out surplus labour at a surprisingly fast rate.

Suggested Citation

  • David J. Smyth, 1982. "A Short‐Run Employment Function for Australia: 1911–12 to 1938–39," The Economic Record, The Economic Society of Australia, vol. 58(4), pages 375-378, December.
    • Handle: RePEc:bla:ecorec:v:58:y:1982:i:4:p:375-378
    DOI: 10.1111/j.1475-4932.1982.tb00388.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-4932.1982.tb00388.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1475-4932.1982.tb00388.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecorec:v:58:y:1982:i:4:p:375-378. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.