In this response to Mark Hayes's criticism of his article, 'Lucas on involuntary unemployment', the author insists on the need to draw a distinction between labour rationing (a market outcome) and unemployment (the activity of job seeking). Economic theory is mainly concerned with the former....

The aim of this paper is to examine critically Lucas' arguments against Keynes's General Theory and in particular against Keynes's concept of involuntary unemployment. It comprises two main parts. In the first part of the paper, the author questions Lucas's claim that Keynes betrayed the...

This article tests the view (derived from Hicks and Patinkin) that non-market clearance may be caused by slow adjustment ("process rigidity"). There are models where market-rationing is present and derives from some form of rigidity, but this rigidity cannot be considered as process rigidity. It...