Lucas on Involuntary Unemployment
The aim of this paper is to examine critically Lucas’ arguments against Keynes’s General Theory and in particular against Keynes’s concept of involuntary unemployment. It comprises two main parts. In the first, I question Lucas’s claim that Keynes betrayed the equilibrium discipline by freeing himself from the postulates of optimising behaviour and market clearing. In the second, I discuss Lucas’ three arguments against the involuntary unemployment concept - first, that there is no rationale for drawing a distinction between two sorts of unemployment, second that every economic outcome features voluntarity and involuntarity jointly and, third, that alternatives to unemployment are always present.
|Date of creation:||01 Jan 2002|
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- Michel De Vroey, 1997.
"Involuntary unemployment: the missing piece in Keynes's General Theory,"
The European Journal of the History of Economic Thought,
Taylor & Francis Journals, vol. 4(2), pages 258-283.
- De Vroey, Michel, 1994. "Involuntary Unemployment : The Missing Piece in Keyne's General Theory," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1994011, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Donald A. Walker (ed.), 2000. "Equilibrium," Books, Edward Elgar, volume 0, number 1585.
- Lucas, Robert E, Jr, 1996. "Nobel Lecture: Monetary Neutrality," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 661-82, August.
- Michel De Vroey, 1999. "From Labor Rationing to (Involuntary) Unemployment: A Conceptual Elucidation," Eastern Economic Journal, Eastern Economic Association, vol. 25(3), pages 315-330, Summer.
- De Vroey, Michel, 1997.
"Marshall on Equilibrium and Time. A Reconstruction,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
1997010, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Michel De Vroey, 2000. "Marshall on equilibrium and time: a reconstruction," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 7(2), pages 245-269.
- Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
- Michel De Vroey, 2001. "Friedman and Lucas on the Phillips Curve: From a Disequilibrium to an Equilibrium Approach," Eastern Economic Journal, Eastern Economic Association, vol. 27(2), pages 127-148, Spring.
- Michel De Vroey, 1998. "Is the tatonnement hypothesis a good caricature of market forces?," Journal of Economic Methodology, Taylor & Francis Journals, vol. 5(2), pages 201-221.
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