Modelling Aggregate Demand for Labour: A Reply to Dowrick and Wells

MacDonald, Garry

doi:10.1111/j.1475-4932.2004.00201.x

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Authors

MacDonald, Garry

Date

2004

Type

Journal Article

Metadata

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Citation

Lewis, Philip E.T. and MacDonald, Garry. 2004. Modelling Aggregate Demand for Labour: A Reply to Dowrick and Wells. Economic Record. 80 (251): pp. 441-459.

Source Title

Economic Record

DOI

10.1111/j.1475-4932.2004.00201.x

ISSN

00130249

Faculty

Curtin Business School

School of Economics and Finance

URI

http://hdl.handle.net/20.500.11937/3509

Collection

Curtin Research Publications

Abstract

Dowrick and Wells (2004) have attempted to point to what they see as a number of fundamental misinterpretations in a recent paper by Lewis and MacDonald (202) estimating demand for labour in Australia. However, it is argued that it is a particular assumption about a nominal price setting that leads to their results being different from that of the standard literature on labour demand. When the usual assumption are adopted, the results of Lewis and MacDonald (2002) hold and, therefore, are correct.