The theory of unemployment, too, is historically conditioned

Abstract

The social reality which models seek to interpret changes over time. All models are historically conditioned, but some are more so than others. In one way or another all theoretical models un unemployment take account of this, however, they do so implicitly.  In this study, the author presents the results of various econometric estimates which, on the basis of certain theoretical hypotheses, bring out some empirical regularities. These regularities are of a probabilistic nature and depend on the structural data which in specific “slices” of history are relatively stable, but which change in the course of time, occasionally even in short time spans. While neoclassical economists reason in terms of interdependence, a static concept, the reasoning put forward in this paper is in terms of interaction, a dynamic one.

JEL: E24, J64