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Cambridge Journal of Economics 28:397-411 (2004)
Cambridge Journal of Economics, Vol. 28, No. 3, © Cambridge Political Economy Society 2004; all rights reserved

Lucas on involuntary unemployment

Michel De Vroey*

Address for correspondence: IRES, Université catholique de Louvain, 3 Place Montesquieu, 1348 Louvain-la-neuve, Belgium; email address: devroey{at}ires.ucl.ac.be

The aim of this paper is to examine critically Lucas' arguments against Keynes's General Theory and in particular against Keynes's concept of involuntary unemployment. It comprises two main parts. In the first part of the paper, the author questions Lucas's claim that Keynes betrayed the equilibrium discipline by freeing himself from the postulates of optimising behaviour and market clearing. In the second part, Lucas’ three arguments against the involuntary unemployment concept are discussed—first, that there is no rationale for drawing a distinction between two sorts of unemployment; second, that every economic outcome features the voluntary and the involuntary jointly; and third, that alternatives to unemployment are always present.

Key Words: Keynes • Lucas • Involuntary unemployment

JEL classifications: B22, E12, E13

Manuscript received March 25, 2002; final version received December 9, 2002.


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This article has been cited by other articles:


Home page
 Cambridge J EconHome page
M. G. Hayes
Comment: Lucas on involuntary unemployment
Camb. J. Econ., May 1, 2006; 30(3): 473 - 477.
[Abstract] [Full Text] [PDF]

Home page
 Cambridge J EconHome page
M. De Vroey
Keynes, Lucas and involuntary unemployment: a reply to Hayes
Camb. J. Econ., May 1, 2006; 30(3): 479 - 482.
[Abstract] [Full Text] [PDF]


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