This paper points out an empirical failing of real business cycle models in which unemployment is endogenized through a matching function. One can easily choose a calibration to make the cyclical fluctuation in unemployment as large in the model as it is in the data, or to make the response of...

Kurt W. Rothschild: Arbeitslose: Gibt's die? Ausgewählte Beiträge zu den ökonomischen und gesellschaftspolitischen Aspekten der Arbeitslosigkeit. Herausgegeben von Reiner Buchegger, Monika Hütter und Béla Löderer. Metropolis Verlag, Marburg 1990, 324 Seiten, 29,80 DM

This paper challenges what is the standard account of UK unemployment, namely that the major swings in unemployment over the past 25 years are due predominantly to movements in the underlying empirical “natural rate of unemployment” (NRU). Our analysis suggests that the British NRU has...