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The key features of the Malthusian model are that (i) income determines population growth, with rising wages increasing survival rates and (ii) there is a vital factor of production (land) which is fixed, implying decreased returns to scale for all other factors. The equilibrium state in such a model is a population living on subsistence incomes. The country-level analysis in this paper suggests that (i) the link between income and population growth is (almost) everywhere broken and (ii) there is little evidence of declining returns to scale because of constraints imposed by land carrying capacity anywhere. Population dynamics are being driven by non-income factors in a manner that is reducing population growth rates everywhere. At the same time, output is increasing everywhere, in a manner inconsistent with significantly declining returns to scale based on land being a vital factor of production. [ABSTRACT FROM AUTHOR]

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Copyright of Kyklos is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

SUMMARY This paper was concerned with giving a fuller discussion of the factor-price equalisation theorem in a three-commodity two-factor model and with giving a different 'proof of it. The Appendix considered a more tentative issue: the factor-price equalisation theorem in a three-factor two-commodity model. It was suggested that in certain conditions it would be seen that factor-price equalisation was possible. [ABSTRACT FROM AUTHOR]

SUMMARY S olow's famous contribution to the theory of economic growth is based on the assumption that the savings proportions are the same for all income earners. In this study this restrictive premise is replaced by the assumption that the savings proportions vary according to the different groups of income earners. This paper sets out to analyse the resultant consequences for the long-run equilibrium growth. One essential result is that both the overall savings proportion and the capital-output-ratio are flexible. Their steady-state solutions are, in contrast to the respective solutions in S olow's original paper, dependent on the form of the production function. Moreover, there can be derived certain conditions for the special long-run equilibrium of the Neo-Classical Theorem, which are implying no specific restrictions on the savings proportions of the various groups. Besides, there is shown that on these conditions not only a maximum of total consumption per man is achieved but also an equal distribution of consumption among all groups. [ABSTRACT FROM AUTHOR]

SUMMARY Recent discussions in the literature on tariffs and quotas generally conclude that under competitive market conditions the two policy measures are equivalent, while equivalence in one sense or another breaks down with the introduction of monopoly into one or more markets involved in international trade. This paper shows that this is a misleading conclusion, based entirely on the static nature of the analysis. With partial equilibrium tools it is shown that if changes in demand are allowed for, the two measures give different results. The welfare loss from a quota is more severe than that from a tariff. And under certain restricted conditions a quota can be likened more to exchange control than to a tariff. [ABSTRACT FROM AUTHOR]

SUMMARY In comparing Marshallian and Walrasian stability criteria, opposite stability conditions are found when both demand and supply curves are downward sloping. This paper resolves the inconsistency by considering a behavioral model of the firms in a competitive industry and then specifying the conditions under which the relevant instantaneous adjustment processes will result in stability at the industry level. It turns out that the concept of the representative firm is inadequate for a considerations of the stability of industry equilibrium. Moreover, for different reasons the Walrasian adjustment process is applicable only when all firms are operating on the rising portion of their marginal cost curves. Hence, in the only situation in which the Walrasian and Marshallian processes adequately represent the dynamics of competitive industry (namely rising marginal cost curves for all firms) they lead to identical stability conditions. [ABSTRACT FROM AUTHOR]

This paper explores the consequences of the introduction of the life-cycle hypothesis into an economic growth model with two classes of savers (profits earners and wage earners). Our analysis shows that the determination of the equilibrium interest rate is more flexible than in the corresponding model with constant propensities to save: the results obtained are however basically similar to those obtained in the traditional KALDOR/PASINETTI model. As a matter of fact, the rate of interest turns out to be (a) higher than the natural rate of growth, (b) determined by the behavioural parameters of the profits earners only, and (c) independent of the form of the production function. Looking at the long term properties of the model we show that interest uncertainty may have a stabilizing effect on the equilibrium growth rate of the model. [ABSTRACT FROM AUTHOR]

This paper examines the FRIEDMAN-PHELPS 'expectational (dis)equilibrium' and the CLOWER-LEIJONHUFVUD 'non-market-clearing' paradigms as alternative disequilibrium theories, and draws their respective policy implications. Then, these paradigms are taken as complementary to each other, as containing necessary ingredients for a synthetic disequilibrium theory, whose policy implications can only tentatively be explored. A general disequilibrium theory is founded on the notion of 'disequilibrium consciousness' and on a detailed characterization of 'conjectural' price and/or quantity responses to non-market-clearing, whose quasi-equilibrium outcome is conditioned by both expectations and the intramarket spillover effect. [ABSTRACT FROM AUTHOR]

The main thesis of this paper is that the noncooperative equilibrium model is the wrong model for the development of a satisfactory economic dynamics and the reconciliation of macro and micro economics. In particular, the general equilibrium model is essentially static, cannot handle information conditions with any ease, is basically nonmonetary, and also cannot be easily modified to handle mixed oligopolistic and competitive markets. In contrast, the noncooperative equilibrium solution of COURNOT and NASH contains the competitive equilibrium as a special case and can be applied to economies with oligopolistic elements and nonsymmetric information. Furthermore, in the model building required to well define the noncooperative economy the stress is on process, money and financial institutions, inasmuch as they are needed to define the rules of the game and specify disequilibrium states. In contrast the general equilibrium model is peculiarly unsuited to the handling of disequilibrium states. [ABSTRACT FROM AUTHOR]

In this paper I present a model of exchange-rate equilibrium that incorporates the purchasing-power-parity and factor-price-equalization theories along the lines suggested by HOUTHAKKER's earlier work. I also provide a test of how well this model predicts real-world behavior. The model is outlined in Section I and its implications for computing purchasing power parity examined in Section II. Then in Section III BALASSA's econometric test of the model is shown to be inapplicable, and an alternative test is presented in Section IV. Some concluding remarks in support of the theory are offered in Section V. [ABSTRACT FROM AUTHOR]

ZUSAMMENFASSUNG Der Aufsatz bespricht die Rolle des Bankensystems im Rahmen makroökonomi-scher Modelle. Es wird argumentiert, dass die herkömmlichen Modelle - soweit sie ein Bankensystem überhaupt berücksichtigen - dieser Roue nicht völlig gerecht werden. Ein Modell wird dargestellt, welches die Existenz eines Bankensystems erklären und rechtfertigen kann, indem es seinen produktiven Beitrag explizit aufzeigt, und welches damit eine Basis gibt - im Rahmen eines Gleichgewichts-modells - für eine Analyse der volkswirtschaftlichen Auswirkungen von Mass-nahmen, welche Grösse und Struktur des Bankensystems beeinflussen (wie bei-spielsweise die Einführung gesetzlicher Mindestreserven). SUMMARY The paper discusses the role of the banking system in macroeconomic models. It is argued that the standard models-to the extent that they do include a banking system at all-do not describe this role in a completely adequate manner. A model is presented which does explicitly take into account the productive contribution of a banking system, and which thus can explain and justify its existence, as well as provide us with a basis-in the context of an equilibrium system-for an analysis of the social costs (or benefits) of actions influencing size and structure of the banking system (such as, for example, the introduction of legal reserve requirements). RÉSUMÉ L'article discute le rôle du système bancaire dans le cadre des modèles macro-économiques. L'auteur argumente que les modèles traditionnels - même s'ils considèrent ce rôle - ne lui rendent pas la justice voulue. II présente un modèle capable d'expliquer et de justifier un système bancaire en démontrant explicite-ment sa contribution productive. Dans le cadre d'un modèle èquilibré il crée ainsi un point de départ pour l'analyse des conséquences économiques de mesures qui définissent volume et structure du système bancaire (exemple: introduction de réserves minimales obligatoires). [ABSTRACT FROM AUTHOR]

The current crisis is not only one of financial markets, but also of macroeconomics. Leading scholars call for a paradigm shift away from dynamic general equilibrium models, though some argue that the profession's arsenal already contains the tools and historical lessons needed to deal with such crises. Taking this view to the limit, we demonstrate that the workhorse models of undergraduate macroeconomics not only permit a refined view and classification of financial crises. These models also identify scenarios under which either policymakers would be ill advised to follow conventional prescriptions, or under which full-scale depressions loom that call for a coordination of monetary and fiscal policy. [ABSTRACT FROM AUTHOR]

A meta-analysis of thirty-four restriction tests from nine studies of the natural rate of unemployment hypothesis (NRU) finds the statistical trace of a false empirical hypothesis. A theme of bias and misspecification among those studies that tend to be more supportive of NRU emerges. When combined with a separate meta-analysis of NRU's falsifying hypothesis, unemployment ‘hysteresis’ ( Stanley 2004a ), the natural rate hypothesis may be regarded as empirically ‘falsified’ ( Popper 1959 ). Monte Carlo simulations validate the meta-regression methods used here to integrate different restriction tests and to identify their limitations. [ABSTRACT FROM AUTHOR]

Studies the trade equilibria that can be introduced by scale economies despite the workings of the market mechanism. Efficient and inefficient equilibria and comparative advantage; Free market and inefficient equilibria; Description of the basic model presented.

Focuses on the used of dove/hawk equilibrium in discussing the equilibrium that exist in many cases in the economic world. Presentation of examples with the free riding situations; Two basic strategies for stock purchase; Information abou the investors in the market which the author call them as the unwashed and belong to the third category; Two sets of potential purchasers in the market; Free riding in economy.

Copyright of Kyklos is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

SUMMARY A balance of payments adjustment mechanism should be defined as 'any balance of payments disturbance which can be deliberately initiated in order to correct some other disturbance'. The traditional mechanisms, based on changes in exchange rates, prices and incomes, can no longer be applied effectively because they are domestically impalatable. Consequently, governments have come to rely on new ways of initiating countervailing disturbances, among them (a) pressures on surplus countries; (b) changes in foreign tastes; (c) stimulating economic growth; and (d) forming or joining a customs union. In the present disequilibrium system, new adjustment mechanisms like these are being widely used, and are in fact becoming the only effective means for maintaining international equilibrium. [ABSTRACT FROM AUTHOR]

SUMMARY Most of the important generalizations of international trade theory that owe their origin to the classical school are long-run and static in nature, implicitly assuming that disequilibrium is a transitory state and that passage between equilibria is untroubled. Yet past experience seems to indicate that external disequilibria can remain for extended periods of time, and that the modern system is a disequilibrium system. The nature of the international disequilibrium system has sometimes been attributed, erroneously, to the Keynesian foreign-trade-multiplier theorem that an increase in exports will induce an increase in imports which is smaller than the initial increase in exports, and this has been the origin of the belief that 'HUME'S law' is invalid in the case of saving and unemployment. However, HUME'S law is valid even in this case if gold flows are allowed to have their natural effect on the internal money supply and hence on interest rates, investment and incomes. HUME'S law is therefore valid in the case of Keynesian unemployment, although the price-specie-flow mechanism is replaced by an income-specie-flow process. The true nature of the international disequilibrium system derives from the fact that central banks do not allow externally-induced gold flows to affect the internal supply of money since that would conflict with the new primary goal of monetary policy; full employmentwithout inflation. The new function of monetary policy leaves a policy vacuum with respect to the balance of payments, except insofar as ad hoc policies are designed to suit special circumstances. Gold flows are therefore automatically neutralized by open market operations in some countries, while in other countries monetary policy in effect cancels or reinforces the monetary effect of gold flows in the pursuit of internal stability. At critical times, when foreign exchange reserves become dangerously low and subject to speculation, or when they become burdensomely high, action by the authorities must be introduced even if this is at the expense of internal stability. Even in these cases, however, the system need not become an equilibrium system since the objective might be to recoup reserves or allow them to run down. [ABSTRACT FROM AUTHOR]

SUMMARY This note is an attempt to offer a quantitatively significant answer to the question: How effective is cost disinflation likely to be in restoring a deficit country's balance of payments equilibrium? This question is occasioned by such recent structural changes in the world economy as to intensify cost-price competition in international markets. In seeking the needed answer, the author has set up a system of equations to describe the relevant domestic and foreign variables affecting a trading nation's balance of payments-on plausible assumptions. The analysis made on the basis of that system leads to the following conclusions: 1. If a nation is not a marginal supplier of internationally tradeable goods, the price-elasticity of world demand for that nation's exports is likely to be so far below unity (trend value) as to worsen its balance of payments in consequence of a disinflation-induced fall in its export price, given the constant exchange rates and the constant level of effective world demand. 2. If a nation's exports consist largely of capital goods and manufactures, the income-elasticity of world demand for that nation's exports is likely to exceed unity so as to aggravate its balance of payments difficulties during a period of falling effective world demand possibly set off by some other nation's disinflationary drive, cet. par. 3. If a nation's cost disinflation increases its innovational investment (designed to increase general productivity), its induced imports are likely to increase via the foreign-trade multiplier and so to offset any beneficial effect that a disinflationinduced fall in the export price might have on its trade balance. 4. In sum, the analysis would make it theoretically unsound and practically unwise for any trading nation to place unilaterally excessive reliance on the price mechanism in general and disinflation in particular for balance of payments equilibrium-especially in this day and age of universal wage-price rigidities, income sensibilities and exchange-rate flexibilities. [ABSTRACT FROM AUTHOR]