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Macroeconomic Policy and Unemployment: Empirical Evidence from the Euroland

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  • Alexiou, Constantinos
  • Argitis, Georgios

Abstract

Τhe emergence of the neo-liberal doctrine in the European Union (EU), as this is reflected by the prevalence of monetarism and market deregulation, has spawned a wave of criticism to be leveled at the way national macroeconomic policies have been conducted, with more emphasis on the unprecedented high level of unemployment experienced by virtually all EU countries. A theoretical exploration of this new policy orientation is being pursued in an attempt to unveil a potential mechanism responsible for the dire employment record. This paper’s primary aim is to gain an empirical insight into, a somehow forgotten, relationship between capital stock and unemployment. The conducted econometric analysis provides useful empirical results, which support the relevant literature and argues in favour of implementing an alternative, macroeconomic policy in the EU.

Suggested Citation

  • Alexiou, Constantinos & Argitis, Georgios, 2005. "Macroeconomic Policy and Unemployment: Empirical Evidence from the Euroland," Review of Applied Economics, Review of Applied Economics, vol. 1(1).
  • Handle: RePEc:ags:reapec:143487
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    References listed on IDEAS

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    More about this item

    Keywords

    Macroeconomic Policy; Capital Stock; Unemployment; Pooled Estimators; Random Coefficients.; Labor and Human Capital; Marketing; Political Economy; Research Methods/ Statistical Methods; B22; E12.;

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics

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