IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/32248.html
   My bibliography  Save this paper

Unemployment out of nowhere – a structural axiomatic analysis of objective determinants

Author

Listed:
  • Kakarot-Handtke, Egmont

Abstract

Unemployment is usually explained with reference to the equilibrium of supply and demand in the labour market. This approach rests on specific behavioral assumptions that are formally expressed as axioms. The standard set of axioms is replaced in the present paper by a set of structural axioms. This approach yields the objective determinants of employment. They consist of effective demand, the actual outcome of price formation, structural stress as determined by the heterogeneity within the business sector and the income distribution. Sudden changes of employment are effected by latent relative switchers that are hard to spot empirically.

Suggested Citation

  • Kakarot-Handtke, Egmont, 2011. "Unemployment out of nowhere – a structural axiomatic analysis of objective determinants," MPRA Paper 32248, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:32248
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/32248/1/MPRA_paper_32248.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kakarot-Handtke, Egmont, 2011. "The pure logic of value, profit, interest," MPRA Paper 30853, University Library of Munich, Germany.
    2. Axel Leijonhufvud, 2009. "Out of the corridor: Keynes and the crisis," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(4), pages 741-757, July.
    3. Hausman,Daniel M., 1992. "The Inexact and Separate Science of Economics," Cambridge Books, Cambridge University Press, number 9780521425230, December.
    4. Hoover,Kevin D., 2001. "Causality in Macroeconomics," Cambridge Books, Cambridge University Press, number 9780521452175.
    5. Hausman,Daniel M., 1992. "The Inexact and Separate Science of Economics," Cambridge Books, Cambridge University Press, number 9780521415019, December.
    6. Kakarot-Handtke, Egmont, 2011. "Keynes’s missing axioms," MPRA Paper 32742, University Library of Munich, Germany, revised 11 Aug 2011.
    7. Kakarot-Handtke, Egmont, 2011. "The wondrous effortlessness of unifying circuit-, money-, price- and distribution theory," MPRA Paper 31279, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kakarot-Handtke, Egmont, 2011. "Reconstructing the Quantity Theory (II)," MPRA Paper 32542, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kakarot-Handtke, Egmont, 2011. "Unemployment out of nowhere," MPRA Paper 32257, University Library of Munich, Germany, revised 15 Jul 2011.
    2. Ralph W Bailey, 2012. "Human Economists and Abstract Methodology," Economic Issues Journal Articles, Economic Issues, vol. 17(1), pages 49-75, March.
    3. Kevin Hoover, 2005. "Economic Theory and Causal Inference," Working Papers 64, University of California, Davis, Department of Economics.
    4. Kakarot-Handtke, Egmont, 2011. "Reconstructing the Quantity Theory (II)," MPRA Paper 32542, University Library of Munich, Germany.
    5. Giandomenica Becchio, 2020. "The Two Blades of Occam's Razor in Economics: Logical and Heuristic," Economic Thought, World Economics Association, vol. 9(1), pages 1-17, July.
    6. Marcel Boumans & Mary Morgan, 2002. "Ceteris paribus conditions: materiality and the application of economic theories," Journal of Economic Methodology, Taylor & Francis Journals, vol. 8(1), pages 11-26.
    7. Kevin Hoover, 2005. "Economic Theory and Causal Inference," Working Papers 257, University of California, Davis, Department of Economics.
    8. Kakarot-Handtke, Egmont, 2011. "Exploitation and its unintended outcomes. An axiomatic obituary for Marx’s surplus value," MPRA Paper 31792, University Library of Munich, Germany.
    9. Suzuki, Tomo, 2003. "The accounting figuration of business statistics as a foundation for the spread of economic ideas," Accounting, Organizations and Society, Elsevier, vol. 28(1), pages 65-95, January.
    10. Kevin D. Hoover, 2016. "The Crisis in Economic Theory: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 54(4), pages 1350-1361, December.
    11. Itzhak Gilboa & Andrew Postlewaite & Larry Samuelson & David Schmeidler, 2011. "Economic Models as Analogies," PIER Working Paper Archive 12-001, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    12. Itzhak Gilboa & Andrew Postlewaite & Larry Samuelson & David Schmeidler, 2014. "A Model of Modeling," PIER Working Paper Archive 14-026, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    13. Ole Røgeberg & Morten Nordberg, 2005. "A defence of absurd theories in economics," Journal of Economic Methodology, Taylor & Francis Journals, vol. 12(4), pages 543-562.
    14. Joshua M. Epstein, 2007. "Agent-Based Computational Models and Generative Social Science," Introductory Chapters, in: Generative Social Science Studies in Agent-Based Computational Modeling, Princeton University Press.
    15. Giuseppe Garofalo, 2014. "Irreducible complexities: from Gödel and Turing to the paradigm of Imperfect Knowledge Economics," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(6), pages 3463-3474, November.
    16. Smith, Peter, 2009. "Induction, complexity, and economic methodology," MPRA Paper 12693, University Library of Munich, Germany.
    17. Julian Reiss, 2001. "Natural economic quantities and their measurement," Journal of Economic Methodology, Taylor & Francis Journals, vol. 8(2), pages 287-311.
    18. Castle, Emery N., 2000. "The Economics Of Rural Places And Agricultural Economics," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36361, Western Agricultural Economics Association.
    19. Thomas Mayer, 1998. "Indexed Bonds And Heterogeneous Agents," Contemporary Economic Policy, Western Economic Association International, vol. 16(1), pages 77-84, January.
    20. Thomas E. Chamberlain, 1998. "On the psychological basis of economics and social psychology," ERSA conference papers ersa98p396, European Regional Science Association.

    More about this item

    Keywords

    New framework of concepts; Structure-centric; Axiom set; Full employment; Employment–profit ratio trade-off; Causality; Economic law; Historical specificity; Latent relative switcher;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:32248. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.