Abstract
Most new classical models — for example Sargent (1976) for the US — contain no explicit labour supply and demand equations, but rather an aggregate output supply equation derived from some implicit equations for labour market and productive technology. This was true also of the Liverpool Model, a new classical model of the UK, until in 1980 it became obvious to me that there had to be a full and explicit analysis of unemployment whose behaviour was diverging markedly from its traditional relationship with output (Okun’s law).
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Bain, G. and Price, R. (1980) Profiles of Union Growth: A Comparative Statistical Portrait of 8 Countries, Blackwell, Oxford.
Batchelor, R. A. and Sheriff, T. D. (1980) Unemployment and unanticipated inflation in post war Britain, Economica, 47, 179–192.
Benjamin, D. and Kochin, L. (1979) Searching for an explanation of unemployment in inter war Britain, Journal of Political Economy, 87, No. 3, 441–470.
Benjamin, D. and Kochin, L. and Critics (1982) Unemployment and unemployment benefits in twentieth century Britain: a reply to our critics, and preceding critics’ comments, Journal of Political Economy, 90, 369–436.
Brookes, S. and Henry, S. G. (1983) Reestimation of the National Institute model, National Institute Economic Review, 103, 62–70.
Godfrey, L. G. (1978) Testing for higher order serial correlations in regression equations when the regressors include lagged dependent variables, Econometrica, 46, 1303–1310.
Henry, S. G. B., Payne, J. M. and Trinder, C. (1985) Real wages and unemployment: the role of unemployment, Social Security benefits and unionization, Oxford Economic Papers, 37, 330–338.
Hines, A. G. (1964) Trade unions and wage inflation in the United Kingdom, 1893–1961, Review of Economic Studies, 31, 221–252.
Holden, K. and Peel, D. A. (1979) The determinants of the unemployment rate: some empirical evidence, The Statistician, 20, No. 2, 101–107.
Holden, K. and Peel, D. A. (1981) Unemployment and the replacement ratio — some reduced form estimates for the UK, Economics Letters, 8, 349–354.
Junankar, P. N. (1981) An econometric analysis of unemployment in Great Britain, 1952–75, Oxford Economic Papers, 33, 387–400.
Lancaster, T. (1979) Econometric methods for the duration of unemployment, Econometrica, 47, 939–956.
Layard, R., Metcalf, D., and Nickell, S. (1978) The effect of collective bargaining on relative and absolute wages, British Journal of Industrial Relations, 16, November, 287–302.
Layard, R., and Nickell, S. J. (1985) The causes of British unemployment, National Institute Economic Review, No. 111 (February) p. 62.
Lewis, H. G. (1963) Unionism and Relative Wages in the United States, University of Chicago Press.
Lucas, R. E. and Rapping, L. S. (1969) Real wages, employment and inflation, Journal of Political Economy, 77, 721–754.
MacKay, D. E. and Reid, G. L. (1972) Redundancy unemployment and manpower policy, Economic Journal, 82, 1256–1272.
Maki, D. and Spindler, A. (1975) The effect of unemployment compensation on the rate of unemployment in Great Britain, Oxford Economic Papers, 27, 440–454.
Minford, A. P. L. (1980) A rational expectations model of the UK under fixed and floating exchange rates, in The State of Macroeconomics, Carnegie Rochester Conference Series on Public Policy 12, 293–355.
Minford, A. P. L. (1983), Labour Market Equilibrium in an open economy, Oxford Economic Papers, 35, November supplement, 207–244.
Minford, A. P. L. (1984) Response to Nickell, Economic Journal, 94, 954–959.
Minford, A. P. L. (1985) Response to Henry, Payne and Trinder, Oxford Economic Papers, 37, No. 2, 339–343.
Minford, A. P. L., Davies, D. H., Peel, M. J. and Sprague, A. (1983) Unemployment — Cause and Cure, Ist edn, Martin Robertson, Oxford.
Minford, A. P. L. and Hilliard, G. (1978) The cost of variable inflation, in Contemporary Economic Analysis (eds M. J. Artis and A. R. Nobay), Croom Helm, London.
Mulvey, C. (1976) Collective agreements and related earnings in UK manufacturing in 1973, Economica, 43, No. 172, 419–427.
Muth, J. F. (1961) Rational expectations and the theory of price movements, Econometrica, 29, 315–335.
Nickell, S. (1979a) The effects of unemployment and related benefits on the duration of unemployment, Economic Journal, 89, March, 34–49.
Nickell, S (1979b) Estimating the Probability of Leaving Unemployment, Econometrica, 47, 1249–1266.
Nickell, S. (1981) The demand for labour function in UK manufacturing, paper presented to Treasury Academic Panel, Centre for Labour Economics, London School of Economics.
Nickell, S. J. (1984) A review of unemployment: cause and cure by Patrick Minford, with David Davies, Michael Peel and Alison Sprague, Economic Journal, 94, 946–953.
Oswald. A. J. (1982) The microeconomic theory of the trade union, Economic Journal, 92, 576–595.
Parsley, C. J. (1980) Labour union effects on wage gains: a survey of recent literature, Journal of Economic Literature, 18, 1–31.
Pencavel, J. H. (1974) Relative wages and trade unions in the United Kingdom, Economica, 41, 194–210.
Purdy, D. L. and Zis, G. (1973) Trade unions and wage inflation in the UK: a reappraisal, in Essays in Modern Economics (ed. M. Parkin), Longman, 1973, 294–327; reprinted in Inflation and Labour Markets (eds D. Laidler and D. Purdy), Manchester University Press, 1974.
Sargan, J. D. (1964) Wages and prices in the United Kingdom, in Econometric Analysis for National Economic Planning (eds P. E. Hart, G. Mills and J. K. Whittaker) Butterworth, London.
Sargent, T. J. (1976) A classical macroeconomic model of the United States, Journal of Political Economy, 84, 207–238.
Sargent, Thomas J. (1979) Macroeconomic Theory, Academic Press, New York.
Smith, R. (1983) On the classical nature of the Wu-Hausman statistics for the independence of stochastic regressors and disturbance, Economics Letters, 11, No 4, 357–364.
Treble, J. G. (1982) Does the union/non-union wage differential exist? Paper given to 1982 Association of University Teachers of Economics, Conference at Surrey University (mimeo), University of Hull.
Wallis, K. F. (1980) Econometric implications of the rational expectations hypothesis, Econometrica, 48, 49–72.
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1988 Chapman and Hall Ltd
About this chapter
Cite this chapter
Minford, P. (1988). A new classical model of the labour market. In: Beenstock, M. (eds) Modelling the Labour Market. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-1203-8_5
Download citation
DOI: https://doi.org/10.1007/978-94-009-1203-8_5
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-010-7035-5
Online ISBN: 978-94-009-1203-8
eBook Packages: Springer Book Archive