What - or Who - Started the Great Depression?
AbstractHerbert Hoover. I develop a theory of labor market failure for the Depression based on Hoover's industrial labor program that provided industry with protection from unions in return for keeping nominal wages fixed. I find that the theory accounts for much of the depth of the Depression and for the asymmetry of the depression across sectors. The theory also can reconcile why deflation/low nominal spending apparently had such large real effects during the 1930s, but not during other periods of significant deflation.
Download InfoIf 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.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 15258.
Date of creation: Aug 2009
Date of revision:
Publication status: published as Ohanian, Lee E., 2009. "What - or who - started the great depression?," Journal of Economic Theory, Elsevier, vol. 144(6), pages 2310-2335, November.
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
- E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
- N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-08-30 (All new papers)
- NEP-CBA-2009-08-30 (Central Banking)
- NEP-HIS-2009-08-30 (Business, Economic & Financial History)
- NEP-MAC-2009-08-30 (Macroeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sanford M. Jacoby & Sunil Sharma, 1991.
"Employment Duration and Industrial Labor Mobility in the United States, 1880-1980,"
UCLA Economics Working Papers
618, UCLA Department of Economics.
- Jacoby, Sanford M. & Sharma, Sunil, 1992. "Employment Duration and Industrial Labor Mobility in the United States, 1880–1980," The Journal of Economic History, Cambridge University Press, vol. 52(01), pages 161-179, March.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
by Jia-Yuh in 普通人的自由主義 on 2011-05-26 15:53:00
- Did Keynes get it wrong?
by paragwaknis in Musings of the Sorts on 2010-04-01 20:47:28
- Guillermo A. Calvo & Fabrizio Coricelli & Pablo Ottonello, 2012. "Labor Market, Financial Crises and Inflation: Jobless and Wageless Recoveries," NBER Working Papers 18480, National Bureau of Economic Research, Inc.
- Crafts, Nicholas; Fearon, Peter, 2010.
"Lessons from the 1930s' Great Depression,"
CAGE Online Working Paper Series
23, Competitive Advantage in the Global Economy (CAGE).
- Calvo, Guillermo & Coricelli, Fabrizio & Ottonello, Pablo, 2012. "The Labor Market Consequences of Financial Crises With or Without Inflation: Jobless and Wageless Recoveries," CEPR Discussion Papers 9218, C.E.P.R. Discussion Papers.
- Arpaia, Alfonso & Curci, Nicola, 2010.
"EU labour market behaviour during the Great Recession,"
22393, University Library of Munich, Germany.
- Alfonso Arpaia & Nicola Curci, 2010. "EU labour market behaviour during the Great Recession," European Economy - Economic Papers 405, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
- Alfonso ARPAIA & Nicola CURCI, . "EU labour market behaviour during the Great Recession," Working Papers wp2010-6, Department of the Treasury, Ministry of the Economy and of Finance.
- Alex Klein & Keisuke Otsu, 2013. "Efficiency, Distortions and Factor Utilization during the Interwar Period," Studies in Economics 1317, Department of Economics, University of Kent.
- repec:cge:warwcg:146 is not listed on IDEAS
- Klein, Alexander & Otsuy, Keisuke, 2013. "Efficiency, Distortions and Factor Utilization during the Interwar Period," CAGE Online Working Paper Series 147, Competitive Advantage in the Global Economy (CAGE).
- Emin M. Dinlersoz & Jeremy Greenwood, 2012.
"The Rise and Fall of Unions in the U.S,"
NBER Working Papers
18079, National Bureau of Economic Research, Inc.
- Emin Dinlersoz & Jeremy Greenwood, 2012. "The Rise and Fall of Unions in the U.S," Economie d'Avant Garde Research Reports 19, Economie d'Avant Garde.
- Emin Dinlersoz & Jeremy Greenwood, 2012. "The Rise And Fall Of Unions In The U.S," Working Papers 12-12r, Center for Economic Studies, U.S. Census Bureau, revised Jun 2013.
- Hatton, Timothy J. & Thomas, Mark, 2010.
"Labour Markets in the Interwar Period and Economic Recovery in the UK and the USA,"
CEPR Discussion Papers
7983, C.E.P.R. Discussion Papers.
- Timothy J. Hatton & Mark Thomas, 2010. "Labour markets in the interwar period and economic recovery in the UK and the USA," Oxford Review of Economic Policy, Oxford University Press, vol. 26(3), pages 463-485, Autumn.
- Jon D. Wisman, 2013. "Labor Busted, Rising Inequality and the Financial Crisis of 1929: An Unlearned Lesson," Working Papers 2013-07, American University, Department of Economics.
- Lee E. Ohanian, 2010. "The Economic Crisis from a Neoclassical Perspective," Journal of Economic Perspectives, American Economic Association, vol. 24(4), pages 45-66, Fall.
- Chicu, Mark & Vickers, Chris & Ziebarth, Nicolas L., 2013. "Cementing the case for collusion under the National Recovery Administration," Explorations in Economic History, Elsevier, vol. 50(4), pages 487-507.
If references are entirely missing, you can add them using this form.