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The remarkable transformation of the UV curve in economic theory

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  • Peter Rodenburg

Abstract

The purpose of this paper is to provide an analysis of the impact the Unemployment-Vacancy (UV) curve (or Beveridge curve) had on economic theory and to provide an account of the subsequent radical changes in its place and role over the decades since its first appearance in 1958. The paper traces the historical development of the UV curve and argues that the role of the UV curve has changed from that of a measuring device, to a graphical representation of full employment, to an axiom necessary for matching models of unemployment to a diagnostic tool. This changing role is best understood in the light of the paradigmatic change from Keynesianism to neoclassical search theory.

Suggested Citation

  • Peter Rodenburg, 2011. "The remarkable transformation of the UV curve in economic theory," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 18(1), pages 125-153.
  • Handle: RePEc:taf:eujhet:v:18:y:2011:i:1:p:125-153
    DOI: 10.1080/09672567.2011.546080
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Peter Rodenburg, 2010. "The UV or Beveridge Curve," Chapters, in: Mark Blaug & Peter Lloyd (ed.), Famous Figures and Diagrams in Economics, chapter 51, Edward Elgar Publishing.
    2. Gabriel P. Mathy, 2015. "Hysteresis and Persistent Long-Term Unemployment: Lessons from the Great Depression and World War II," Working Papers 2015-02, American University, Department of Economics.
    3. Peter Diamond, 2013. "Cyclical Unemployment, Structural Unemployment," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 61(3), pages 410-455, August.
    4. Stefan Schiman, . "Labor Supply Shocks and the Beveridge Curve: Empirical Evidence from EU Enlargement," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics.
    5. Stefan Schiman, 2018. "Labor Supply Shocks and the Beveridge Curve," WIFO Working Papers 568, WIFO.
    6. Peter Rodenburg, 2016. "How Full is Full Employment?How Tools and Not Theory Explained Full Employment," HISTORY OF ECONOMIC THOUGHT AND POLICY, FrancoAngeli Editore, vol. 2016(2), pages 5-25.
    7. Peter A. Diamond, 2013. "Structural unemployment," Public Policy Brief, Federal Reserve Bank of Boston.
    8. Michael W. L. Elsby & Ryan Michaels & David Ratner, 2015. "The Beveridge Curve: A Survey," Journal of Economic Literature, American Economic Association, vol. 53(3), pages 571-630, September.

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