Wage determination and 'the general theory'...

[Paul Davidson <PB108928%UTKVM1.BITNET@xxxxxxxxxxxxxxxxx>]

FROM:  Paul Davidson
"      Economics Department
"      523 Stokely Management Center     974-4221
I am saying something much less than your grand and glorious CRUSADE. I am sayi
ng that economics has developed a (very large) number of special case explanati
ons. The query is can one provide a general theory -- at first as a simple
logical exercise, and later as a question of comparing the necessary assumption
s as applicable to the "real world" . Can we agree that if we can get a general
theory, this is an important aspect of focusing our analytical framework? Then
we can get on to the business of seeing [1] whether any special case assumption
s make the analysis applicable to all situations of unemployment, or only to
certain episodes of unemployment. If the latter is the case, then policies
developed to deal with specific episodic unemployment events need not resolve
existing unemployment problems if other charateristics are also present or
if the necessary special case conditions can not be present. Paul Davidson

Have a good day!