Ferri / Greenberg The Labor Market and Business Cycle Theories

1989
ISBN: 978-3-662-00831-7
Verlag: Springer
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, Band 325, 186 Seiten, eBook

Reihe: Lecture Notes in Economics and Mathematical Systems

Interest in business cycles has had its 'ups and downs'. After a period of almost steady state growth and of economic tranquility, when the business cycle seemed to be obsolete, the turbulence of the 70s and 80s has contributedto a renewed interest in the topic. Important analytical and methodological innovations have also favored the present abundance of contributions. Four innovations are of particular importance: i. microfoundations ii. nonlinearities iii. stochastic variables iv. real aspects. Both Classical macroeconomics and new-Keynesian approaches seem to share these characteristics, which apply both to endogenous and exogenous explanations of the cycle. The distance separating the newer literature from its forebears seems vast. Previously, cycle theory was characterized by a macro approach and utilized nonlinearities either through piecewise 'linear models or with the aid of Classical theorems in the field of dynamic systems. To consider and to compare the old and the new literature on business cycles is one of the goals of this book. To narrow the distance separating them is another goal of this research. We do not try to bridge it, but rather to revisit the former tradition with new tools. Finally, a particular emphasis is put on the 'ceilings and floors' type of literature. One of us has written a D. Phil. thesis with Sir John Hicks, and both have worked with H. P. Minsky. Hicks, along with Goodwin, introdu. ced the concept of ceilings and floors into business cycle analysis, and Minsky made important contributions to the area.

Zielgruppe

Research

Autoren/Hrsg.

Ferri, Piero

Greenberg, Edward

Inhaltsverzeichnis

One: Introduction.- 1. Scope and Objectives.- 2. The Revival of Business Cycle Theories.- 3. An Historical Outline.- 4. Nonlinearities and Business Cycles.- 5. Recent Business Cycle Research.- 6. The Strategic Role of the Labor Market.- 7. Plan of the Book.- Two: The Labor Market, Business Cycles and Economic Instability.- 1. The Labor Market and Business Cycle Theory.- 2. “Stylized Patterns” in Wages and Unemployment.- 3. The Dimensionality of the Wage-Price Subsystem.- 4. The Wage-Price Spiral and Business Cycles.- 5. The Regime Switching Approach.- 6. The Relevance of Institutional Elements.- 7. The Impact on Cycles.- 8. Historical Paradigms.- 9. The Role of Monetary Factors.- Three: The Analytical Role of the Labor Market in Long-and Short-Run Models.- 1. Labor Market and Theoretical Paradigms.- 2. A Common Background for Long-Run Models.- 3. The Neo-Marxian Approach.- 4. The Neo-Keynesian Approach.- 5. The Neo-Classical Approach.- 6. A Synoptic View.- 7. Short-Run Models.- 8. The Peculiar Nature of the Labor Market.- Four: Nonlinear Deterministic Labor Market Theories of Business Cycles.- 1. The Missing Equation.- 2. Nonlinearities and the Labor Market.- 3. A Nonlinear Wage Equation.- 4. The Limit Cycle.- 5. A Classical Nonlinear Model.- 6. The Structural Instability Problem.- 7. An Extension.- 8. A Neo-Classical Disequilibrium Approach.- 9. Concluding Remarks.- Five: The Mathematics of Nonlinearity.- 1. Old and New Tools of Analysis.- 2. The Econometrics of Nonlinearities.- 3. Piecewise Linear Analyses.- 4. The New Nonlinear Techniques.- 5. The Hopf Bifurcation.- 6. An Example.- 7. Chaotic Behavior.- 8. A Definition of Chaos.- 9. A Simulation Exercise.- 10. Some Final Remarks.- Six: The Labor Market and Stochastic Theories of Business Cycles.- 1.Microfoundations and Stochastic Theories.- 2. Criteria for a Taxonomy.- 3 Endogenous and Exogenous Explanations.- 4. Lucas’s Contribution.- 5. The Labor Market, Market Clearing, and Rational Expectations.- 6. Business Cycles in Equilibrium Models.- 7. An Equilibrium Labor Market Cycle.- 8. Information, Rationality and Uncertainty.- Seven: Wage-Price Spirals.- 1. Instability in an Intermediate-Run Approach.- 2. Real Versus Nominal Wages.- 3. Staggered Contracts.- 4. Blanchard’s Contribution.- 5. Meade’s Contribution.- 6. Nonlinearities and Feedbacks.- Eight: A Regime Switching Model.- 1. A Three-Level Analysis of Wages.- 2. The Regime Switching Hypothesis.- 3. The Nature of Discontinuity.- 4. The Economics of Regime Switching.- 5. The Wage-Price Submodel.- 6. The Employment Subsystem.- 7. Exogenous Real Investment and Government Expenditures.- 8. Exogeneity in Nominal Values.- 9. A Simulation Exercise.- Nine: Some Critical Aspects.- 1. Different Strategies.- 2. Benassy’s Model.- 3. A Limit Cycle in Wages and Employment.- 4. A Criticism.- 5. A Nonlinear Model of Wage-Price Determination.- 6. The Nonneutrality Hypothesis.- 7. An Extension of the Piecewise Linear Model.- 8. The Impact of Unemployment.- 9. Final Remarks.- Ten: Concluding Remarks.