Comment on Chapters 14 and 15

  • F. C. Palm

Abstract

It is a pleasure for me to act as a discussant of the papers by L. Bloch and by J. Bradley. I read their papers with much interest. The authors present the results of simulations using respectively a large and a medium size model. They analyse the impact of various policy measures aimed at reducing unemployment. The size and structure of the models are different but more interestingly, the policy measures considered are distinct in spirit and nature. Laurence Bloch’s model of the French economy consists of some 3000 equations and includes theirteen sectors. The policy measures considered in her paper are concerned with enlarging the flexibility of the labour market by adjusting real wages to reduce unemployment. I like to characterise this as a classical policy applied to a Keynesian regime. John Bradley analyses the effects for the Irish economy of an increase of employment in the public sector financed either by foreign borrowing or by increases in taxes. This policy is Keynesian in spirit. His model is rather small and includes only three production sectors: industry, agriculture and services.

Keywords

Europe 

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Reference

  1. ARTUS, P., LAROQUE, G. and MICHEL, G. (1984) ‘Estimation of a Quarterly Macroeconomic Model with Quantity Rationing’, Econometrica, 52, pp. 1387–1413.CrossRefGoogle Scholar
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Copyright information

© Joan Muysken and Chris de Neubourg 1989

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  • F. C. Palm

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