Advanced Search
MyIDEAS: Login to save this paper or follow this series

Lucas's Early Research and the Natural Rate of Unemployment

Contents:

Author Info

  • Danilo Freitas Ramalho da Silva
Registered author(s):

    Abstract

    This paper builds a narrative on the early work of Robert E. Lucas Jr., in the late 1960’s, which culminated in the modeling and testing of the natural rate of unemployment hypothesis. Lucas’s modeling and testing of the natural rate can be found, respectively, in two papers: “Expectations and the Neutrality of Money” (Lucas, 1972a) and “Econometric Testing of the Natural Rate Hypothesis” (Lucas, 1972b). These papers are the synthesis of the two branches of Lucas’s research at that time; one on labor market behavior and other on optimal investment by firms. This synthesis changed the way in which the natural rate of unemployment was originally elaborated by Friedman (1968a) and Phelps (1967, 1968), by modeling it in a general equilibrium framework with rational expectations and giving it a proper test. Lucas’s research agenda synthesis in the late 1960’s was the result of his close interaction with Phelps and Prescott, backed up by his pragmatic equilibrium approach to economics, concerning modeling, econometric estimation and testing. Phelps explicitly suggested a general equilibrium approach to Lucas’s labor market modeling, while Prescott helped him in dealing with the rational expectations hypothesis.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://hope.econ.duke.edu/node/678
    File Function: main text
    Download Restriction: no

    Bibliographic Info

    Paper provided by Center for the History of Political Economy in its series Center for the History of Political Economy Working Paper Series with number 2013-01.

    as in new window
    Length: 22
    Date of creation: 2013
    Date of revision:
    Handle: RePEc:hec:heccee:2013-1

    Contact details of provider:
    Postal: Center for the History of Political Economy Box 90097 Durham, NC 27708-0097
    Phone: (919) 660-6899
    Web page: http://hope.econ.duke.edu

    Related research

    Keywords:

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:hec:heccee:2013-1. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Center for the History of Political Economy Webmaster).

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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