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...

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...