ENGLISH

Equilibrium unemployment theory

By Christopher A. Pissarides

Book information

Publisher
The MIT Press
Year
2000
ISBN
0262161877, 9780262161879, 9780585238418
Open Library ID
OL15505386M
Language
english
Format
CHM
Filesize
779 kB (797258 bytes)
Edition
2
Pages
\0
Topic
Economy
Library
Kolxo3
Time added
2010-07-29 05:14:56

Description

An equilibrium theory of unemployment assumes that firms and workers maximize their payoffs under rational expectations and that wages are determined to exploit the private gains from trade. This book focuses on the modeling of the transitions in and out of unemployment, given the stochastic processes that break up jobs and lead to the formation of new jobs, and on the implications of this approach for macroeconomic equilibrium and for the efficiency of the labor market. This approach to labor market equilibrium and unemployment has been successful in explaining the determinants of the "natural" rate of unemployment and new data on job and worker flows, in modeling the labor market in equilibrium business cycle and growth models, and in analyzing welfare policy. The second edition contains two new chapters, one on endogenous job destruction and one on search on the job and job-to-job quitting. The rest of the book has been extensively rewritten and, in several cases, simplified.

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