Show Less
Restricted access

Nonlinear Dynamics and Unemployment Theory

Series:

Boe Thio

This book attempts to integrate two lines of research. It joins the tradition of nonlinear macrodynamic models of cyclical growth, in particular the Goodwin/Kaldor/Phillips-type models of persistent fluctuations and limit cycles. Capital deepening and capital widening investment is introduced into models of cyclical growth. This approach is combined with recent neo-Keynesian analysis of wage-price formation and unemployment theory. Unemployment is decomposed in terms of demand deficiencies, job shortages, and the impact of capital-labor substitution. In this way a dynamic analysis of unemployment in terms of Classical, Keynesian and technological elements is obtained. It is shown that different components of unemployment can display their own cyclical frequencies and patterns. In this way the typical long and short term cyclical behavior of unemployment is simulated by an integrated nonlinear model of persistent growth cycles.
Contents: Choice of technique and substitution in nonlinear growth-cycle models - Capital deepening and capital widening investment in one-sector and two-sector models of cyclical growth - Goodwin/Kaldor/Phillips-type models of persistent fluctuations and limit cycles - Neo-Keynesian analysis of wage-price formation, efficiency wages, and decomposition of unemployment.