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One quite often runs into arguments that rely on assuming full employment, and then relating that policy decisions. In my view, such arguments are fundamentally weak; we need to refer to actual model results to discuss policy. In this article, I explain why an attempt to apply a NAIRU argument to a Job Guarantee is misguided. The analysis is unusual: instead of discussing a single model, the behaviour of an entire class of reasonable economic models is analysed. This reflects the attitude towards model uncertainty that animates robust control theory. Since my thesis is that full employment arguments are mathematically incoherent, I had little choice but to lapse into a stilted mathematical writing style. My apologies.... Wonkish.Bond Economics The Theoretical Incoherence Of Full
Topics:
Mike Norman considers the following as important: economic modeling, Full employment, Job Guarantee, NAIRU
This could be interesting, too:
One quite often runs into arguments that rely on assuming full employment, and then relating that policy decisions. In my view, such arguments are fundamentally weak; we need to refer to actual model results to discuss policy. In this article, I explain why an attempt to apply a NAIRU argument to a Job Guarantee is misguided. The analysis is unusual: instead of discussing a single model, the behaviour of an entire class of reasonable economic models is analysed. This reflects the attitude towards model uncertainty that animates robust control theory. Since my thesis is that full employment arguments are mathematically incoherent, I had little choice but to lapse into a stilted mathematical writing style. My apologies.... Wonkish.Bond Economics The Theoretical Incoherence Of Full
Topics:
Mike Norman considers the following as important: economic modeling, Full employment, Job Guarantee, NAIRU
This could be interesting, too:
Merijn T. Knibbe writes More ´Natural rate of unemployment´ busting, bad measurement edition.
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Matias Vernengo writes Beyond the NAIRU – 7th Godley-Tobin Lecture
One quite often runs into arguments that rely on assuming full employment, and then relating that policy decisions. In my view, such arguments are fundamentally weak; we need to refer to actual model results to discuss policy. In this article, I explain why an attempt to apply a NAIRU argument to a Job Guarantee is misguided. The analysis is unusual: instead of discussing a single model, the behaviour of an entire class of reasonable economic models is analysed. This reflects the attitude towards model uncertainty that animates robust control theory.
Since my thesis is that full employment arguments are mathematically incoherent, I had little choice but to lapse into a stilted mathematical writing style. My apologies....Wonkish.
Bond Economics
The Theoretical Incoherence Of Full Employment Arguments
Brian Romanchuk