Contrary to expectations, many policies which have traditionally been recommended to alleviate unemployment are found, in fact, to exacerbate the unemployment problem. We simulate a linearised numerical version of the model. We examine seven alternative policies, six carried out by a regional...

The concept of the natural rate of unemployment is widely used in the analysis and discussion of macroeconomic policy. It is, however, unobservable so that estimates of the natural rate are necessarily based on a particular theory of unemployment. Hence, measures of the natural rate, whether...

We urge macroeconomists to abandon the 'natural rate' as an analytical device on the ground that it has become a source of great and growing confusion. But we press them to recognise that it has great potential as a policy tool provided we grasp the central idea of a hypothetical unemployment...

Regional unemployment disparities are widely observed, appear to persist through time and are often a reason for concern on the part of both regional and national governments. This paper constructs a small two-region general-equilibrium model and uses it to assess the effectiveness of...

We urge macroeconomists to abandon the 'natural rate' as an analytical device on the ground that it has become a source of great and growing confusion. But we press them to recognise that it has great potential as a policy tool provided we grasp the central idea of a hypothetical unemployment...

GROENEWOLD N. and HAGGER A. J. (2003) Natural-rate estimates for the Australian states: an SVAR approach, Reg. Studies 37 , 251-263. It has long been recognized that economic policy based on national economic indicators may be inappropriate when evaluated from the point of view of individual...