This paper develops a political economy model of multiple unemployment equilibria to provide a theory of an endogenous … natural rate of unemployment. This model is applied to the UK and the US interwar period which is remembered as the decade of … mass unemployment. The theory here sees the natural rate and the associated path of unemployment as a reaction to shocks …

), we establish that the unemployment rate, the job separation rate, and the job finding rate exhibit a larger response to … of the state dependence in the unemployment rate, 76 percent for the separation rate and 36 percent for the job finding …

This paper develops a political economy model of multiple unemployment equilibria to provide a theory of an endogenous … natural rate of unemployment. This model is applied to the UK and the US interwar period which is remembered as the decade of … mass unemployment. The theory here sees the natural rate and the associated path of unemployment as a reaction to shocks …

The 1930s in the UK and USA is remembered as the decade of mass unemployment. We develop a model of equilibrium … unemployment based on the Meltzer and Richard (1981) model of redistribution financed by distortionary taxation. This model is … extended to the UK and the US interwar period to provide a theory of an endogenous natural rate of unemployment. The theory …