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Modelling Aggregate Demand for Labour: A Reply to Dowrick and Wells

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Author Info
PHILIP E.T. LEWIS
GARRY MACDONALD

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Abstract

Dowrick and Wells (2004) have attempted to point to what they see as a number of fundamental misinterpretations in a recent paper by Lewis and MacDonald (2002) estimating demand for labour in Australia. However, it is argued here that it is a particular assumption about a nominal price setting that leads to their results being different from that of the standard literature on labour demand. When the usual assumption are adopted, the results of Lewis and MacDonald (2002) hold and, therefore, are correct. Copyright © 2004 Economic Society of Australia..

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Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 80 (2004)
Issue (Month): 251 (December)
Pages: 441-444
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Handle: RePEc:bla:ecorec:v:80:y:2004:i:251:p:441-444

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  1. Marika Karanassou & Hector Sala, 2008. "Labour Market Dynamics in Australia: What Drives Unemployment?," Discussion Papers 2008-26, School of Economics, The University of New South Wales. [Downloadable!]
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This page was last updated on 2009-11-28.

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