A Classical-Marxian Model Of Education, Growth And Distribution

This paper develops a classical-Marxian macroeconomic model to examine the growth and distributional consequences of education. First, the role of education in skill formation is considered and it is shown that an expansion in education will promote growth and have beneficial distributional effects within the working class, but it will redistribute income from workers to capitalists. Second, the model is extended analyze the broader political economic consequences of education on class relations and class conflict. The model suggests the importance of a progressive type of education rather than one which weakens the power workers, for it allows for equitable growth outcomes which improve the position of workers as a whole and reduces inequality within workers. Finally, the model shows that education leads to multiple equilibria and it stresses the importance of providing suitable incentives to workers for taking advantage of greater education access, without which the economy can be caught in a low-skill trap. JEL Categories: E2, E11, O41, J31.education, growth, distribution.

Keynesian Theory and the AD-AS Framework: A Reconsideration

Contrary to what has been argued by a number of critics, the AD-AS framework is both internally consistent and in conformity with Keynes’s own analysis. Moreover, the eclectic approach to behavioral foundations allows models in this tradition to take into account aggregation problems as well as evidence from behavioral economics. Unencumbered by the straightjacket of optimizing microfoundations, the approach can provide a useful starting point for the analysis of dynamic macroeconomic interactions. In developing this analysis, the AD-AS approach can draw on insights from the Post Keynesian, neo-Marxian and structuralist traditions, as well as from the burgeoning literature on behavioral economics. JEL Categories: E12, O11, B22, B41, B50AS-AD, Keynes, New Keynesian theory, microeconomic foundations

Contractionary Effects of Stabilization and Long-Run Growth

This paper reviews models of long-run growth which assume that the economy is not on its so-called "normal" path, and in which both aggregate demand and aggregate supply issues have a role in determining long-run growth. This review shows that contractionary stabilization policies can have adverse long-run effects on growth, and may in fact exacerbate the problems they were intended to solve

Os determinantes do crescimento de longo prazo nos modelos de Kaldor

Os modelos de crescimento de Kaldor são neokeynesianos porque incluem uma função de acumulação desejada, mas produzem um resultado neoclássico, a saber: a taxa de crescimento de longo prazo depende das taxas de crescimento da oferta de mão-de-obra e da mudança tecnológica. Neste artigo, mostra-se que essa propriedade resulta da hipótese um tanto forçada de pleno emprego formulada por Kaldor. Constrói-se urn modelo para demonstrar que sem tal hipótese surgem várias possibilidades, das quais apenas uma produz o resultado de Kaldor, as demais apresentando resultados não-neoclássicos.  Kaldor's growth models are neo-keynesian in including a desired accumulation function, but produce the neoclassical result that the rate of long run growth depends on the rates of growth of labor supply and technological change. This property is shown to result from Kaldor's somewhat forced assumption of full employment A model is constructed to show that without such an assumption several possibilities arise, only one of which produces Kaldor's result the others yielding results which are non-neoclassical

Uneven Development in Alternative Models of North-South Trade

This paper develops a general framework in the form of an underdetermined model in which alternative models of North-South trade and development can be looked upon as providing alternative "closures." Several such models, drawing on neoclassical, neo-Marxian, neo-Keynesian, neo-Kaleckian, and other approaches, are examined and compared to models in the existing North-South literature. The implications of these models for uneven development patterns and long-run changes in the North-South terms of trade are examined.

Keynesian Theory and the Aggregate-Supply/Aggregate-Demand Framework: A Defense

This paper defends the Aggregate-Supply/Aggregate-Demand framework against recent criticisms by Barro and others. Using four models - a neoclassical-synthesis Keynesian, a monetarists mark 1, a rational expectation/new classical, and a Kaleckian/post-Keynesian - based on this framework, it is shown that it provides an internally-consistent and potentially useful teaching tool, that Keynesian versions of it do follow some of Keynes's ideas, that a Kaleckian/post-Keynesian version is consistent with empirical data, and that the criticisms by Barro and others are unwarranted.Post Keynesian; Supply

Clower on Effective Demand

This note examine's Clower's recent criticisms of Keynes' theory of effective demand and argues that Keynes added much to Marshallian theory when he extended to the aggregate level, that his theory does have implications for unemployment without requiring wage rigidity, that his theory does not depend on the non-clearance of the good market, and the main difference between Keynes and the Keynesians concerns the consequences of wage-price flexibility.Effective Demand