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Equilibrium Unemployment Theory (The MIT Press)
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Review
The unemployment story has many mansions, and this book owns one of them. It analyzes unemployment as a search-and-match-mediated equilibrium of flows through the labor market, set in motion by job destruction and job creation. The new edition adds endogenous job destruction and on-the-job search to the story, and can fairly claim to tell you everything you always wanted to know about search unemployment, but didn't know whom to ask.―Robert M. Solow, Institute Professor of Economics, emeritus, MITPissarides incorporates imoprtant new developments into equilibrium unemployment theory. A particularly important development is endogenizing job destruction as well as job creation into a unified theoretical framework. This framework, along with new data on job and worker flows, promises to provide a better understanding of unemployment.―Edward C. Prescott, Universities of Chicago and MinnesotaPissarides provides the labor-market building blocks for the new macroeconomics. A must read for everyone in macro and labor.―Bob Hall, Hoover Institution, Stanford UniversityChristopher Pissarides provides a definitive introduction to the search model of the labor market. The revised model, in dispensing with money and deriving real interest rates from real considerations, reveals itself to be a full subscriber to the natural-rate theory of unemployment. Among the several additions, the new chapter endogenizing job destruction is particularly valuable.―Edmund Phelps, McVickar Professor of Political Economy, Columbia University
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About the Author
Christopher A. Pissarides, 2010 Nobel Laureate in Economics, is School Professor of Economics and Political Science and Regius Professor of Economics at the London School of Economics.
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Product details
Series: The MIT Press
Paperback: 272 pages
Publisher: The MIT Press; second edition edition (February 24, 2017)
Language: English
ISBN-10: 0262533987
ISBN-13: 978-0262533980
Product Dimensions:
6 x 0.4 x 9 inches
Shipping Weight: 13.4 ounces (View shipping rates and policies)
Average Customer Review:
4.6 out of 5 stars
5 customer reviews
Amazon Best Sellers Rank:
#1,054,382 in Books (See Top 100 in Books)
The book provides an in depth and complete treatment of it's subject matter.The math is all there. But along with the math are clear discussions of what and why.Too often equations are thrown out there in a lump with a brief description. That approach cannot help but miss important and enlightening details or nuances. More than that, I think when you see that you should suspect that the source doesn't understand the material themselves.From this book it is clear that this author knows the subject inside and out. Which isn't any surprise. The surprise is just how well he conveys that knowledge here.Highly recommend this book for anyone who wants a complete understanding of this material.
A classic textbook, well-organized. The print is also good. I just wish it could be cheaper.
This is the wonderful text book for macro-labor and it must be the bible for students who are major especially in macroeconomics and labor economics.
The book is written by one of the pioneers of matching theory approach to unemployment theory. The book starts with very simple matching models and builds its way up by adding something at each chapter. So the book starts by a deterministic model of equilibrium with only labor as input. you see that first capital is added to the model, then dynamics of the model are discussed and balanced paths are derived. Then random elements and shocks are added,then heterogeneity among workers is considered and then search efforts and other elements are being added.I think the book is very well written and the flow of topics and ideas is smooth and easy to grasp. Verbal discussion and explanations are clear, informative and are always accompanied by the proper formulas and derivations. Note that the book covers only matching models of labor and completely ignores other types of models (like efficiency wage, implicit contracts, ...). Also chapters don't have exercises at the end, which I don't think is a major handicap for the book, as it is more meant for graduate level research.In general I think this book makes understanding the matching theory easy and anybody who wants to work on labor economics should know about this book.
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