Unemployment Equilibria and Input Prices: Theory and Evidence from the United States

Alan A. Carruth, N. Hooker and Andrew J. Oswald

Working Papers from Centre for Economic Performance & Institute of Economics

Abstract: The paper develops an efficiency-wage model where input prices affect the equlibrium rate of unemployment. We show that a simple framework based on only two prices (the real price of oil and the real rate of interest) is able to explain the main post-war movements in the rate of U.S. joblessnss. The equations do well in forecasting unemployment many out-of-sample, and provide evidence that the oil price spike associated with Iraq's invasion of Kuweit appears to be a component of the "mystery" recession which followed.

Keywords: UNEMPLOYMENT; WAGE (search for similar items in EconPapers)
JEL-codes: E24 D24 (search for similar items in EconPapers)
Date: 1997
View citations in EconPapers

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Unemployment Equilibria and Input Prices: Theory and Evidence from the United States (1998)
Journal Article: Unemployment Equilibria And Input Prices: Theory And Evidence From The United States (1998)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:fth:cepies:22

Access Statistics for this paper

More papers in Working Papers from Centre for Economic Performance & Institute of Economics
Address: United Kingdom; Centre for Economic Performance & Institute of Economics and Statistics, Oxford University. Manor Road. Oxford OX1 3Ul
Contact information at EDIRC.
Series data maintained by Thomas Krichel ().