----------------- HES POSTING ----------------- 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 ------------ FOOTER TO HES POSTING ------------ For information, send the message "info HES" to [log in to unmask]