Kakarot-Handtke, Egmont (2011): Unemployment out of nowhere – a structural axiomatic analysis of objective determinants.
Download (276kB) | Preview
Unemployment is usually explained with reference to the equilibrium of supply and demand in the labour market. This approach rests on specific behavioral assumptions that are formally expressed as axioms. The standard set of axioms is replaced in the present paper by a set of structural axioms. This approach yields the objective determinants of employment. They consist of effective demand, the actual outcome of price formation, structural stress as determined by the heterogeneity within the business sector and the income distribution. Sudden changes of employment are effected by latent relative switchers that are hard to spot empirically.
|Item Type:||MPRA Paper|
|Original Title:||Unemployment out of nowhere – a structural axiomatic analysis of objective determinants|
|Keywords:||New framework of concepts; Structure-centric; Axiom set; Full employment; Employment–profit ratio trade-off; Causality; Economic law; Historical specificity; Latent relative switcher|
|Subjects:||E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E24 - Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity
E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E21 - Consumption ; Saving ; Wealth
|Depositing User:||Egmont Kakarot-Handtke|
|Date Deposited:||14. Jul 2011 22:24|
|Last Modified:||21. Feb 2013 02:51|
Born, M. (1949). Natural Philosophy of Cause and Chance. Oxford: Oxford University Press.
Foley, D. K. (2003). General Equilibrium: Problems, Prospects and Alternatives; Final Discussion. In F. Petri, and F. Hahn (Eds.), General Equilibrium. London: Routledge.
Hausman, D. M. (1992). The Inexact and Separate Science of Economics. Cambridge: Cambridge University Press.
Hodgson, G. M. (2001). How Economics Forgot History. The Problem of Historical Specificity in Social Science. London, New York, NY: Routledge.
Hoover, K. D. (2001). Causality in Macroeconomics. Cambridge: Cambridge University Press.
Kakarot-Handtke, E. (2011a). Keynes’s Missing Axioms. SSRN Working Paper Series, pages 1–29. URL http://ssrn.com/abstract=1841408.
Kakarot-Handtke, E. (2011b). The Pure Logic of Value, Profit, Interest. SSRN Working Paper Series, pages 1–21. URL http://ssrn.com/abstract=1838203.
Kakarot-Handtke, E. (2011c). The Wondrous Effortlessness of Unifying Circuit-, Money-, Price-, and Distribution Theory. SSRN Working Paper Series, pages 1–15. URL http://ssrn.com/abstract=1858031.
Keynes, J. M. (1973). The General Theory of Employment Interest and Money. The Collected Writings of John Maynard Keynes Vol. VII. London, Basingstoke: Macmillan. (1936).
Kline, M. (1982). Mathematics. The Loss of Certainty. Oxford, New York, NY: Oxford University Press.
Leijonhufvud, A. (2009). Out of the Corridor: Keynes and the Crisis. Cambridge Journal of Economics, 33: 741–757.
Mill, J. S. (2006). Principles of Political Economy With Some of Their Applications to Social Philosophy, volume 3 of Collected Works of John Stuart Mill. Indianapolis, IN: Liberty Fund. (1866).
Phillips, A. W. (1958). The Relation Between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861-1957. Economica, 25: 283–299. URL http://www.jstor.org/stable/2550759.
Prychitko, D. L. (1998). Why Economists Disagree: The Role of the Alternative Schools of Thought, pages 1–16. Albany, NY: State University of New York Press.
Schumpeter, J. A. (1994). History of Economic Analysis. New York, NY: Oxford University Press.
Shaik, A. (1980). Laws of Production and Laws of Algebra: Humbug II. In E. J. Nell (Ed.), Growth, Profits, and Property, pages 80–95. Cambridge, New York, NY, Melbourne: Cambridge University Press.
Veblen, T. (1961). Why is Economics Not an Evolutionary Science? In The Place of Science in Modern Civilisation, pages 56–81. New York, NY: Russel & Russel.
Vickers, D. (1995). The Tyranny of the Market. A Critique of Theoretical Foundations. Ann Arbor; MI: University of Michigan Press.