IDEAS home Printed from
   My bibliography  Save this article

Neoclassical versus Keynesian approaches to Eastern German unemployment: a rejoinder to Merkl and Snower


  • John Hall
  • Udo Ludwig


This rejoinder contrasts a Keynesian approach for explaining unemployment in Germany's eastern region with a neoclassical, market-failure approach advanced by Christian Merkl and Dennis Snower. A skewed distribution of headquarters favoring the western region, combined with insufficient levels of effective demand for outputâand subsequently for laborâare argued to be the key causes of persistent unemployment. Seven tables offer a comparative approach to output, investment, and labor demand in Germany's eastern and western regions, noting the emergence and persistence of "involuntary" unemployment appearing as a jobs' gap in the eastern region, especially for services.

Suggested Citation

  • John Hall & Udo Ludwig, 2008. "Neoclassical versus Keynesian approaches to Eastern German unemployment: a rejoinder to Merkl and Snower," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 31(1), pages 167-185, September.
  • Handle: RePEc:mes:postke:v:31:y:2008:i:1:p:167-185

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    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:mes:postke:v:31:y:2008:i:1:p:167-185. 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: (Chris Longhurst). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.