Post-Keynesian

Figure 1: A Pattern Diagram1.0 Introduction Aside, perhaps from the above visualization, nothing novel is presented in this post. It follows an example presented by Freni (1991). I know of this example from problems 7.7 and 7.29 in Kurz and Salvadori (1995). The oddities of this example can be seen in an earlier and more complicated example from D'Agata (1983). This is an example of intensive rent. When the requirements for use are large enough, capitalists will use more than one process...

In my previous post, I laid out some issues with the methodology being used to explore the relationship between inflation and asset prices. One issue that I raised was with respect to the observation that inflation below 1% seemed to lead to lower stock market earnings. In the previous post I pointed out that this was likely misleading: it was unlikely that the low price growth itself was giving rise to such poor earnings; it was far more likely that this was mainly being driven...

Many today are examining the impact that inflation has on asset prices. One of the best papers on the topic is by Harvey et al and it is well worth a look. What I am going to write here does not refute these sorts of analyses, but I think it raises issues that at least serve to lower our confidence in the findings. The issues that I want to explore are as much methodological as they are empirical, but these two aspects can be approached simultaneously. When analysing equity...

[embedded content]John Eatwell On The Bomb Sraffa Planted At The Foundations Of EconomicsJames Galbraith on Dismal Economics, reviewing books by Mason Gaffney and Fred Harrison, Stephen Marglin, Alessandro Roncaglia, and Robert Skidelsky. Jane Gleeson-White, in the Guardian, on accounting, unpaid care work, and the biosphere. A blog post pointing out Bob Murphy's confusions and mistakes on the implications of the Cambridge Capital Controversy for the Austrian school. Compare and...

In what follows, I want to draw out some implications of an interesting post by Greg Obenshain at Verdad Capital. In the post, Obenshain laid out data showing a number of things about Treasury bonds. Most notably, that they are a great investment if you are worried about the prospect of a recession or depression – and this is so no matter at what starting yield you are investing. One of the exhibits Obenshain showed, however, did not get sufficient attention. I think that it may...

To me, this is an easy question. SNALT, for a capitalist economy, is: L = a0 (I - A)-1y The notation is from Luigi Pasinetti's Lectures on the Theory of Production. The idea can be empirically applied with data from national income and product accounts (NIPAs), using techniques explained in, for example, Ronald Miller and Peter Blair's Input-Output Analysis

Figure 1: Wage Curves and Rent1.0 Introduction I might as well illustrate an example with extensive rent and reswitching. I find it incredible that the agents in these sorts of models understand the implications of, say, a variation of the distribution of income for their self-interests. Nevertheless, I try to note the consequences of variation in the distribution of income and perturbations of model parameters on prices of production. And I do not worry too much about disequilibria. 2.0...

"Let us take the process of circulation in a form under which it presents itself as a simple and direct exchange of commodities. This is always the case when two owners of commodities buy from each other, and on the settling day the amounts mutually owing are equal and cancel each other. The money in this case is money of account and serves to express the value of the commodities by their prices, but is not, itself, in the shape of hard cash, confronted with them. So far as regards...

Figure 1: Variation in Switch Points with Time1.0 Introduction This post continues my effort to understand how fluke cases can partition parameter spaces in models of prices of production with extensive rent. Some background for this post is here, here, and here. 2.0 Technology The technology is described by the coefficients of production in Table 1. I assume that requirements for use are such that they cannot be satisfied by cultivating only two types of land. After fully cultivating...

[embedded content]A Propertarian Getting The Better Of The Wrong Side Of The Argument I have been looking at some debates on YouTube. Not only is there a culture of twitch streamers debating. There are some, such as Noah Cortez "Booksmarts", critiquing debates. By the way, here is a video providing an overview of (Resnick and) Wolff's academic work, seemingly inspired by the prominence Wolff is gaining with his YouTube presence. I suppose that this post is aspirational, and some of these...