IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03826068.html
   My bibliography  Save this paper

Is Keynes's involuntary unemployment only cyclical? A review of the debates on the formalization of Keynesian unemployment
[Le chômage involontaire de Keynes n’est-il que conjoncturel ? Un retour sur les débats autour de la formalisation du chômage keynésien]

Author

Listed:
  • Nicolas Piluso

    (CERTOP - Centre d'Etude et de Recherche Travail Organisation Pouvoir - UT2J - Université Toulouse - Jean Jaurès - UT - Université de Toulouse - UT3 - Université Toulouse III - Paul Sabatier - UT - Université de Toulouse - CNRS - Centre National de la Recherche Scientifique, IUT Paul Sabatier - Institut Universitaire de Technologie - Paul Sabatier - UT3 - Université Toulouse III - Paul Sabatier - UT - Université de Toulouse)

  • E. Le Héron

    (CED - Centre Émile Durkheim - IEP Bordeaux - Sciences Po Bordeaux - Institut d'études politiques de Bordeaux - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)

  • Edouard Cottin-Euziol

    (LC2S - Laboratoire caribéen de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UA - Université des Antilles)

Abstract

In this article, we set out to demonstrate that the idea commonly found in macroeconomics textbooks that Keynesian unemployment is simply cyclical, is fallacious. After highlighting the shortcomings of traditional interpretations that confine Keynesian unemployment to a short-run perspective, we show that several types of macroeconomic models exhibit involuntary unemployment equilibria over the long run. In particular, it will be shown that there are many cases where full employment may not be achieved despite price and wage flexibility.

Suggested Citation

  • Nicolas Piluso & E. Le Héron & Edouard Cottin-Euziol, 2022. "Is Keynes's involuntary unemployment only cyclical? A review of the debates on the formalization of Keynesian unemployment [Le chômage involontaire de Keynes n’est-il que conjoncturel ? Un retour s," Post-Print hal-03826068, HAL.
  • Handle: RePEc:hal:journl:hal-03826068
    DOI: 10.4000/interventionseconomiques.19694
    Note: View the original document on HAL open archive server: https://hal.science/hal-03826068v2
    as

    Download full text from publisher

    File URL: https://hal.science/hal-03826068v2/document
    Download Restriction: no

    File URL: https://libkey.io/10.4000/interventionseconomiques.19694?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, vol. 78(5), pages 1133-1137, December.
    2. J.-M. Grandmont & G. Laroque, 1977. "On Temporary Keynesian Equilibrium," International Economic Association Series, in: G. C. Harcourt (ed.), The Microeconomic Foundations of Macroeconomics, chapter 2, pages 41-61, Palgrave Macmillan.
    3. Robert Boyer, 1988. "D'un krach boursier à l'autre, Irving Fisher revisité," Revue Française d'Économie, Programme National Persée, vol. 3(3), pages 183-216.
    4. Jean Cartelier, 2018. "Money, Markets, Capital: The Case for a Monetary Analysis," Post-Print hal-01701095, HAL.
    5. repec:nbr:nberre:0126 is not listed on IDEAS
    6. Taylor, John B, 1980. "Aggregate Dynamics and Staggered Contracts," Journal of Political Economy, University of Chicago Press, vol. 88(1), pages 1-23, February.
    7. Howitt, Peter, 1985. "Transaction Costs in the Theory of Unemployment," American Economic Review, American Economic Association, vol. 75(1), pages 88-100, March.
    8. Oliver Hart, 1982. "A Model of Imperfect Competition with Keynesian Features," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 97(1), pages 109-138.
    9. E. Glustoff, 1968. "On the Existence of a Keynesian Equilibrium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 35(3), pages 327-334.
    10. Goulven Rubin, 2005. "La controverse entre Clower et Patinkin au sujet de la validité de la loi de Walras," Revue économique, Presses de Sciences-Po, vol. 56(1), pages 5-24.
    11. Edouard Challe, 2000. "La "debt-deflation" selon Irving Fisher, Histoire et actualité d'une théorie de la crise financière," Cahiers d'Économie Politique, Programme National Persée, vol. 36(1), pages 7-38.
    12. Peter A. Diamond, 1982. "Wage Determination and Efficiency in Search Equilibrium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 49(2), pages 217-227.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Seonghwan Oh & Michael Waldman, 1989. "Keynesian Coordination Failure and Persistence," UCLA Economics Working Papers 570, UCLA Department of Economics.
    2. Lévesque, Suzanne & Paquin, Lloyd, 1986. "Les microfondements de la macroéconomique : une recension critique," L'Actualité Economique, Société Canadienne de Science Economique, vol. 62(4), pages 597-619, décembre.
    3. Grandmont, Jean-michel, 1989. "Keynesian issues and economic theory," CEPREMAP Working Papers (Couverture Orange) 8907, CEPREMAP.
    4. Olivier Blanchard, 2000. "What Do We Know about Macroeconomics that Fisher and Wicksell Did Not?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(4), pages 1375-1409.
    5. Yi, Yongxi & Xu, Rongwei & Zhang, Sheng, 2019. "A differential game of R&D investment for pollution abatement in different market structures," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 524(C), pages 587-600.
    6. Cooper, Russell & Haltiwanger, John, 1996. "Evidence on Macroeconomic Complementarities," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 78-93, February.
    7. Thomas Gries, 2006. "SEZ, Regional Development and Disparity," EcoMod2006 272100033, EcoMod.
    8. Seongwan Oh & Michael Waldman, 1989. "The New Perspective on Keynesian Coordination Failure: Theory and Evidence," UCLA Economics Working Papers 559, UCLA Department of Economics.
    9. Blanchard, Olivier Jean & Diamond, Peter, 1992. "The Flow Approach to Labor Markets," American Economic Review, American Economic Association, vol. 82(2), pages 354-359, May.
    10. Amedeo Panci, 1999. "Multiple equilibria: coordination failure and endogenous cycle," Working Papers in Public Economics 30, Department of Economics and Law, Sapienza University of Roma.
    11. Julien, Ludovic A., 2003. "Chômage d’équilibre, équilibres multiples et défauts de coordination," L'Actualité Economique, Société Canadienne de Science Economique, vol. 79(4), pages 523-562, Décembre.
    12. Levin, Mark (Левин, Марк), 2017. "Modeling of Economic Systems Under Conditions of Short-Term Market Disequilibrium [Моделирование Экономических Систем В Условиях Краткосрочного Рыночного Неравновесия]," Working Papers 041709, Russian Presidential Academy of National Economy and Public Administration.
    13. Pascal Michaillat & Emmanuel Saez, 2015. "Aggregate Demand, Idle Time, and Unemployment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(2), pages 507-569.
    14. Cooper, Russell & Haltiwanger, John, 1990. "Inventories and the Propagation of Sectoral Shocks," American Economic Review, American Economic Association, vol. 80(1), pages 170-190, March.
    15. Benassy, Jean-Pascal, 1993. "Nonclearing Markets: Microeconomic Concepts and Macroeconomic Applications," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 732-761, June.
    16. Gerhard Illing, 1990. "Multiplier effects in economies with missing risk markets," Journal of Economics, Springer, vol. 52(1), pages 55-70, February.
    17. Thomas Gries & Wim Naudé, 2010. "Entrepreneurship and structural economic transformation," Small Business Economics, Springer, vol. 34(1), pages 13-29, January.
    18. Russell Cooper, 1987. "Dynamic Behavior of Imperfectly Competitive Economies with Multiple Equilibria," NBER Working Papers 2388, National Bureau of Economic Research, Inc.
    19. Thierry Laurent & Hélène Zajdela, 1999. "Emploi, salaire et coordination des activités," Cahiers d'Économie Politique, Programme National Persée, vol. 34(1), pages 67-100.
    20. B. Curtis Eaton, 2004. "The elementary economics of social dilemmas," Canadian Journal of Economics, Canadian Economics Association, vol. 37(4), pages 805-829, November.

    More about this item

    Keywords

    Involuntary unemployment; Wage flexibility; Growth; SFC models; Chômage involontaire; Flexibilité des salaires; Croissance; Modèles SFC;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    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:hal:journl:hal-03826068. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.