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The appendix to chapter 19 About "the unemployment Theory" prof. Pigu

In the "unemployment Theories" prof. Pigu puts employment volume in Dependence on two major factors, namely: (1) from rates of the real Wages on which hired workers, and (2) from the form insist

Functions of Real Demand for Work. The central part of its book is devoted as

Time to definition of the form of the last function. The author does not ignore that

Actually hired workers insist on certain rates not real, And monetary wages. But practically he recognises that the flowing Rates of monetary wages, it on the prices of the goods acquired on Wages, can be accepted for a criterion of rates of the real wage The payment required by hired workers.

On with. 90 "unemployment Theories" are given the equations, which, according to the prof.

- , "form a research basic point" functions of Real Demand on Work. In view of that some silent assumptions defining, how much Let's apply its analysis to a real life, creep in its argument almost From the very beginning, I will sum up all course of its reasonings up to it Critical item.

Prof. Pigu subdivides all industry into branches which "are taken Production of the goods for the home market, acquired on the wage Payment, and production of the export goods serving for payment of import The goods acquired on wages ", and on"other"branches. Conveniently To name these two groups accordingly "the branches making the goods, Acquired on wages "and" the branches making the goods, Acquired not on wages ". He assumes that in the first group

It will be taken it the person, and in the second - at the person. A total cost

The goods acquired on wages in which production was

It is taken x the person, it designates through F (x), and the usual rate of the wage

Payments - through F ' {x). It is equivalent, though the author does not do the corresponding

Clauses, to the assumption that incremental costs on wages are equal To limiting primary production costs (119). Further it supposes that x+y = ((x) i.e. Number of the persons taken in branches, making acquired on Wages the goods, is function of the general employment. Then it Shows that elasticity of real demand for work in whole (which and

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