Neoclassical versus Keynesian approaches to Eastern German unemployment: a rejoinder to Merkl and Snower

John Hall and Udo Ludwig

Journal of Post Keynesian Economics, 2008, vol. 31, issue 1, 167-185

Abstract: This rejoinder contrasts a Keynesian approach for explaining unemployment in Germany's eastern region with a neoclassical, market-failure approach advanced by Christian Merkl and Dennis Snower. A skewed distribution of headquarters favoring the western region, combined with insufficient levels of effective demand for outputâand subsequently for laborâare argued to be the key causes of persistent unemployment. Seven tables offer a comparative approach to output, investment, and labor demand in Germany's eastern and western regions, noting the emergence and persistence of "involuntary" unemployment appearing as a jobs' gap in the eastern region, especially for services.

Keywords: economic method; explanatory failure; involuntary unemployment; jobs' gap; Keynesian theory; neoclassical theory; Treuhand privatization (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations:

Downloads: (external link)
http://mesharpe.metapress.com/link.asp?target=contribution&id=CP57644U1204R325 (text/html)
Access to full text is restricted to subscribers.

Related works:
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: https://EconPapers.repec.org/RePEc:mes:postke:v:31:y:2008:i:1:p:167-185

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MPKE20

Access Statistics for this article

More articles in Journal of Post Keynesian Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().