To be fair to academia, it has realized that the pure DSGE model is incapable of explaining observable phenomena so they have introduced numerous amendments, known, oddly, as “imperfections” in the model. Long-term nominal contracts, other labour market frictions, imperfection in credit markets, all these and more are prayed in aid and, either rigorously or […]
economics
At a first glance, DSGE models seem to imply total ignorance because representative agents (or representative groups of agents with limited heterogeneity) featuring objective utility functions populate the literature. At a second glance, however, it becomes obvious that “methodological individualism” prevails and even dominates. To understand this dominance one only has to once again note […]
This is not new to most of you of course. You are already steeped in McCloskey’s Rhetoric. Or you ought to be. After all economists are simply telling stories about the economy. Sometimes we are taken in. Sometimes we are not. Unfortunately McCloskey herself gets a little too caught up in her stories. As in […]
Nedanstående är en gästpost signerad Mats Bladh Lars Syll skriver att felet med den neoklassiska teorin är dess deduktiva karaktär. Han tar Paul Krugman som exempel på att kritiska nationalekonomer själva faller tillbaka på sådana slutna modeller, och därför kan man inte ta slutenheten som det avgörande inslaget. Syll kunde ha tagit Joseph Stigler som exempel, […]
Paul Davidson, the co-founder of the Journal of Post Keynesian Economics (JPKE) and a leading Post Keynesian economist, died on June 20, 2024, in Chicago. He was born in Brooklyn, NY, on October 23, 1930, about a year after the Great Crash of 1929. He was a staunch defender of the importance of John Maynard […]
We’ve lots of evidence from different times and places that the elasticity of output with respect to capital is indeed small. In his famous paper which kickstarted this approach to thinking about economic growth, Robert Solow estimated (pdf) that only one-eighth of the increase in US GDP per worker between 1900 and 1949 was due to […]
I am still catching up after being away in the UK last week. I will reflect on that trip in another blog post. So, today, we have a guest blogger in the guise of Professor Scott Baum from Griffith University who has been one of my regular research colleagues over a long period of time.…
Così come la macroeconomia tradizionale del dopoguerra è stata criticata per essere fondata su una metodologia matematica assiomatico-deduttiva, ritengo che il nucleo del neo-ricardianismo sia basato sulla stessa metodologia. Per risolvere il problema di trovare una misura del valore che non sia influenzata dai cambiamenti nella distribuzione del reddito, Sraffa — in “Produzione di merci […]
Das Deutsche Institut für Wirtschaftsforschung (DIW) in Berlin hat Rechnungen für eine Vermögensteuer in Höhe von einem Prozent angestellt, wie sie derzeit politisch diskutiert wird. In dem Modell gilt ein Freibetrag in Höhe von einer Million Euro für Privatpersonen und von fünf Millionen Euro, wenn diese in einem Betrieb stecken. Das bedeutet: Privatleute müssen die […]