EconPapers    
Economics at your fingertips  
 

Unemployment Equilibria And Input Prices: Theory And Evidence From The United States

Alan Carruth, Mark A. Hooker and Andrew Oswald

The Review of Economics and Statistics, 1998, vol. 80, issue 4, 621-628

Abstract: The paper develops an efficiency-wage model in which input prices affect the equilibrium 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 postwar movements in the rate of U.S. joblessness. The equations do well in forecasting unemployment many years out of sample, and provide evidence that the oil-price spike associated with Iraq's invasion of Kuwait appears to be a component of the "mystery" recession that followed. © 1998 by the President and Fellows of Harvard College and the Massachusetts Institute of Technolog

Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (98) Track citations by RSS feed

Downloads: (external link)
http://www.mitpressjournals.org/doi/pdf/10.1162/003465398557708 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Unemployment Equilibria and Input Prices: Theory and Evidence from the United States (1998) Downloads
Working Paper: Unemployment Equilibria and Input Prices: Theory and Evidence from the United States (1998) Downloads
Working Paper: Unemployment Equilibria and Input Prices: Theory and Evidence from the United States (1997)
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:tpr:restat:v:80:y:1998:i:4:p:621-628

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535

Access Statistics for this article

The Review of Economics and Statistics is currently edited by Amitabh Chandra, Olivier Coibion, Bryan S. Graham, Shachar Kariv, Amit K. Khandelwal, Asim Ijaz Khwaja, Brigitte C. Madrian and Rohini Pande

More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by Ann Olson ().

 
Page updated 2019-11-22
Handle: RePEc:tpr:restat:v:80:y:1998:i:4:p:621-628