The Great U.K. Depression: A Puzzle and Possible Resolution

Harold Cole and Lee Ohanian

Review of Economic Dynamics, 2002, vol. 5, issue 1, 19-44

Abstract: The UK was depressed for 20 years between the two World Wars. The decrease in output was entirely due to lower hours per worker and lower employment. Our main finding is that generous unemployment benefits, in conjunction with large negative sectoral shocks, is the most plausible candidate explanation for this depression. We also find that the conventional Keynesian monetary story for this period is unconvincing. (Copyright: Elsevier)

Keywords: unemployment benefits; sectoral shocks; workweek restriction (search for similar items in EconPapers)
JEL-codes: E24 E30 (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (45)

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Working Paper: Data Appendix to The Great U.K. Depression: A Puzzle and Possible Resolution (2002)
Working Paper: The great U.K. depression: a puzzle and possible resolution (2001)
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DOI: 10.1006/redy.2001.0140

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