Our claim is that in a purely free enterprise system, there can be no such thing as involuntary unemployment, as long …

We propose a monetary model in which the unemployed satisfy the official U.S. definition of unemployment: people …, unemployment is involuntary). We integrate our model of involuntary unemployment into the simple new Keynesian framework with no … capital and use the resulting model to discuss the concept of the nonaccelerating inflation rate of unemployment. We then …

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. Yet the issue of the voluntarity versus the involuntarity of unemployment …

We show the existence of involuntary unemployment based on consumers’ utility maximization and firms’ profit … seigniorage) to achieve full-employment under a situation with involuntary unemployment. Under constant prices we show the …-employment from a state with involuntary unemployment, we need budget deficit (Proposition 1). 2) If the full-employment state has …

path stability in autarky, whereas in the other there are efficiency wages, and the autarkic equilibrium may be locally … mobility, while unemployment increases in the country with labor market rigidities, reducing welfare. We also find that taste …

monetary model in which: i) the unemployed are worse o§ than the employed, i.e. unemployment is involuntary and ii) the labor … technology shocks. In addition, the model does well at accounting for the response of the labor force and unemployment rate to …

In the most widely analyzed type of efficiency wage model of involuntary unemployment, firms pay wages in excess of … equilibrium unemployment act as a worker discipline device. This paper concerns what is usually considered the most important … involuntary unemployment. Explicit upfront bonds are only quite rarely observed. A more subtle form of the bonding critique argues …