Keynes, Lucas and Involuntary Unemployment: A Reply to Hayes

Posted: 29 Feb 2008

Date Written: May 2006

Abstract

In this response to Mark Hayes's criticism of his article, 'Lucas on involuntary unemployment', the author insists on the need to draw a distinction between labour rationing (a market outcome) and unemployment (the activity of job seeking). Economic theory is mainly concerned with the former. Yet the issue of the voluntarity versus the involuntarity of unemployment pertains to unemployment as an activity. Failing to make this distinction cannot but lead to semantic confusion.

Keywords: Keynes, Lucas, Involuntary unemployment

Suggested Citation

De Vroey, Michel, Keynes, Lucas and Involuntary Unemployment: A Reply to Hayes (May 2006). Cambridge Journal of Economics, Vol. 30, Issue 3, pp. 479-482, 2006. Available at SSRN: https://ssrn.com/abstract=904723

Michel De Vroey (Contact Author)

Catholic University of Louvain ( email )

Place Montesquieu, 3
Louvain-la-Neuve, 1348
Belgium

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