Post-Keynesian

I have written up a series of post as a research paper: first post, second, third, fourth, fifth, sixth, seventh. Here I present the abstract and most of the introduction. Abstract: Empirical research indicates that the reswitching of techniques, as well as multiple switching with more switch points, is rare. This article explores parameter spaces in the analysis of the choice of technique to suggest why reswitching and triple-switching might be hard to find in empirical data. An example...

Here is a story about David Hilbert torwards the end of his career: "Otto Neugebauer, now an associate professor, was placed at the head of the Mathematical Institute. He held the famous chair for exactly one day, refusing in a stormy session in the Rector's office to sign the required loyalty declaration. The position of the head of the Mathematical Institute passed to Weyl. Although his wife was part Jewish, he was one of those who thought that something might yet be salvaged. All...

Figure 1: Actual and Stylized Partitions of Parameter Space with Triple-Switching This post is a continuation of this series of posts. The partitioning of the parameter space by fluke switch points in these posts can be combined into one picture. The left pane in Figure 1 illustrates. The dashed line is a ray from the origin, discussed below. I find this complete picture for this example hard to perceive by eye. The right pane provides a highly stylized presentation of the partitions,...

Apparently, many mainstream economists assert that anything worthwhile in economics will be published in one of a few journals. The following is a selection of some articles from these well-respected journals, as I understand it: American Economic Review Donald J. Harris. 1973. Capital, distribution, and the aggregate production function. AER. 63(1): 100-113. David Laibman and Edward J. Nell. 1977. Reswitching, Wicksell effects, and the neoclassical production function. AER,...

Figure 1: Extra Profits at Gamma Prices for the Sixth Double-Fluke Switch Point This post is a continuation of this series of posts. In the last double-fluke case, the three switch points between Alpha and Gamma coincide as a ingle switch point. Figure 1 illustrates, while Figure 2 depicts how the parameter space is partitioned around this double-fluke case. Region 7, in which one switch point occurs, is connected. At the point corresponding to the double-fluke case, the two boundaries...

Marx, like Adam Smith and Walt Rostow, had a stages theory of history. Feudalism was succeeded by capitalism, and capitalism is to be succeeded by socialism. Socialism is to arise first in the most advanced capitalist countries. (The theory of history is not my favorite part of Marxist theory.) Russia, in 1917, was a semi-feudal country with peasants as the largest class. I guess China was the same, before Mao. A Marxist would not expect socialism to be successful in either country. I...

Figure 1: Partitions of the Parameter Space Around the Double-Fluke Switch Points This post is a continuation of this series of posts. The fourth and fifth double-fluke cases, in order of an increasing φ t, are symmetrical. The fourth case has two switch points between Alpha and Gamma. One is on the wage axis. The wage curves are tangent at the other switch point, at a positive rate of profits below the maximum. Alpha is cost-minimizing at all feasible rates of profits. Gamma is...

Figure 1: Extra Profits at Gamma Prices for the Third Double-Fluke Switch Point This post is a continuation of this series of posts. The next double-fluke case to be considered arises for parameters on intersection of the upper and lower boundaries of regions 3 and 5. Figure 1 illustrates this case, while Figure 2 depicts local perturbations of this double-fluke case. Perturbations that lead to either of the switch points at the extremes of the rate of profits no longer being at a feasible...

Because of its treatment of capital. Other answers are possible. This post draws heavily on the work of Pierangelo Garegnani. I start with a (parochial) definition of economics: "Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses." -- Lionel Robbins (1932) The scarce means are the factors of production: land, labor, and capital. Land and labor are in physical terms, in units of acres and person-years,...

Figure 1: Extra Profits at Gamma Prices for the Second Double-Fluke Switch Point This post is a continuation of this series of posts. A switch point in which wage curves are tangent on the axis for the rate of profits is a double-fluke case symmetrical to the double-fluke case in the previous post. As shown in Figure 1, this case arises in this example as well. The roles of the Alpha and Gamma techniques are reversed. Alpha is always cost-minimizing, while Gamma is cost-minimizing only at...