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While Alan Freeman has posed a very general set of issues, he starts  
with a quite specific example:   
 
> " For example, if wage  
> demand is specified as a function of employment levels then it is  
> endogenous, if not it is exogenous; but this does not tell me the  
> analytical grounds for the choice of equations." 
>  
 
Daniel Hamermesh's excellent (in my opinion) and widely cited book  
entitled LABOR DEMAND (Princeton, 1993) gives a very  
straightforward and intuitive discussion (pp.18-19) of when an and why  
an empirical labor economist would choose to assume wages  
endogeonous versus employment endogenous versus the more general  
case of both endogenous. It does not get at the deeper issues, but it  
does deal well with the example, and might lead Freeman to some  
useful generalizations...   
 
Robert Goldfarb 
George Washington Univ 
 
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