Post-Keynesian

A Spell for Chameleon, the first book of the Xanth series, shows that Piers Anthony is a neoliberal1. Magicians are important characters in Xanth, and A Spell introduces us to at least two, Humphrey2 and Evil Magician Trent. We find that "Evil" is just what Trent is called. We are not supposed to regard him as such. And he bases his life entirely on market transactions, even though the setting is a feudal society. Everything is an agreement to a contract, or not, for mutual advantage. An...

Figure 1: Bifurcation Diagram1.0 Introduction This post continues my exploration of the variation in the number and "perversity" of switch points in a model of prices of production. This post presents a case in which one switch point replaces two switch points on the wage frontier. 2.0 Technology The example in this post is one of an economy in which four commodities can be produced. These commodities are called iron, steel, copper, and corn. The managers of firms know (Table 1) of one...

On Tuesday 16th of March 2017 Robert Skidelsky and I launched my book The Reformation in Economics in the Clement Attlee room in the House of Lords. It has taken some time to upload these videos of Robert’s and my comments. Most of the speeches were captured but I have included my own text below (I did not end up sticking to the written comments verbatim). On a separate note, Brian Romanchuk has written a short review of the book here. [embedded content] [embedded content] Hi...

Figure 1: Bifurcation Diagram1.0 Introduction I have been exploring the variation in the number and "perversity" of switch points in a model of prices of production. I conjecture that generic changes in the number of switch points with variations in model parameters can be classified into a few types of bifurcations. (This conjecture needs a more precise statement.) This post fills a lacuna in this conjecture. I give an example of a case that I have not previously illustrated. 2.0...

This post states a mathematical conjecture. Consider a model of prices of production in which a choice of technique exists. The parameters of model consist of coefficients of production for each technique and given ratios for the rates of profits among industries. The choice of technique can be analyzed based on wage curves. A point that lies simultaneously on the outer envelope of all wage curves and the wage curves for two techniques (for non-negative wages and rates of profits not...

Table 1: Distribution of Votes Among Parties and Districts DistrictToriesWhigsTotalI5149100II5149100III3367100Total1351653001.0 Introduction This post, amazingly enough, is on current events. Stephanopoulos and McGhee have developed a formula, the efficiency gap, that measures the partisanship of the lines drawn for legislative districts. In this post, I present a numerical illustration of this formula and connect it to current events. I conclude with some questions. 2.0 Numerical Example...

I have organized a series of my posts together into a working paper, titled Bifurcations and Switch Points. Here is the abstract: This article analyzes structural instabilities, in a model of prices of production, associated with variations in coefficients of production, in industrial organization, and in the steady-state rate of growth. Numerical examples are provided, with illustrations, demonstrating that technological improvements or the creation of differential rates of profits can...

Figure 1: Bifurcation Diagram I have presented a model of prices of production in which the the rate of profits differs among industries. Such persistent differential rates of profits may be maintained because of perceptions by investors of different levels of risk among industries. Or they may reflect the ability of firms to maintain barriers to entry in different industries. In the latter case, the model is one of oligopoly. This post is based on a specific numeric example for...

Figure 1: Bifurcation Diagram This post is a continuation of the analysis in this reswitching example. That post presents an example of reswitching in a model of the production of commodities by means of commodities. The example is one of an economy in which two commodities, iron and corn, are produced. Managers of firms know of two processes for producing iron and one process for producing corn. The definition of technology results in a choice between two techniques of production. The...

1.0 Introduction Consider a partial equilibrium model in which: Consumers demand to buy a certain quantity of a commodity, given its price. Firms produce (supply) a certain quantity of that commodity, given its price. This is a model of perfect competition, since the consumers and producers take the price as given. In this post, I try to present a model of the supply curve in which the managers of firms do not make systematic mistakes. This post is almost purely exposition. The...