Horwich / Samuelson Trade, Stability, and Macroeconomics

Essays in Honor of Lloyd A. Metzler
1. Auflage 2014
ISBN: 978-1-4832-6748-7
Verlag: Elsevier Science & Techn.
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 576 Seiten, Web PDF

Trade, Stability, and Macroeconomics: Essays in Honor of Lloyd A. Metzler provides information pertinent to the fundamental aspects of trade, stability, and macroeconomics. This book covers a variety of topics, including nontraded and intermediate commodities, prices, production, exchange rates, and wages. Organized into five parts encompassing 22 chapters, this book begins with an overview of the theory of international trade and the effect of a tariff or export tax on domestic prices. This text then defines the supply of the international commodities as a function of their prices and of the output of the domestic commodity. Other chapters consider the Stolper-Samuelson analysis of the effects of protection of the distribution of income. This book discusses as well the theory of external-internal balance or the assignment problem as related to macroeconomic policy in an open economy. The final chapter deals with the dynamic allocation of scarce resources. This book is a valuable resource for economists.

Autoren/Hrsg.

Horwich, George

Samuelson, Paul A.

Inhaltsverzeichnis

1;Front Cover;4
2;Trade, Stability, and Macroeconomics: Essays in Honor of Lloyd A. Metzler;4
3;Copyright Page;5
4;Table of Contens;6
5;LIST OF CONTRIBUTORS;14
6;INTRODUCTION;16
7;Part I: INTERNATIONAL TRADE THEORY;20
7.1;CHAPTER 1. THE METZLER TARIFF PARADOX;22
7.1.1;Introduction;22
7.1.2;I. The Metzler Analysis in the Traditional Case;23
7.1.3;II. Nontraded Goods: The Home Country Reaction;24
7.1.4;III. Nontraded and Intermediate Goods: The Elasticity of the Foreign Offer Curve;28
7.1.5;IV. Concluding Remarks;32
7.1.6;Appendix;33
7.1.7;ACKNOWLEDGMENTS;37
7.1.8;REFERENCES;37
7.2;CHAPTER 2. THE TRANSFER PROBLEM ONCE AGAIN;38
7.2.1;I. Introduction;38
7.2.2;II. General Formulation;46
7.2.3;III. The Case of Single-Valued Supply Functions: Some General Results;50
7.2.4;IV. The Case of Pure Exchange;60
7.2.5;V. The Transfer Problem with Production;68
7.2.6;ACKNOWLEDGMENTS;94
7.2.7;REFERENCES;94
7.3;CHAPTER 3. THE WELFARE ECONOMICS OF REVERSED INTERNATIONAL TRANSFERS;98
7.3.1;Introduction;98
7.3.2;I. The Cobb–Douglas Utility Function;102
7.3.3;II. Reversed Transfer, Case 1:Transfer Specified in Domestic Product;107
7.3.4;III. Reversed Transfer, Case 2: Transfer Specified in Foreign Product;109
7.3.5;IV. Summary of Results;110
7.3.6;V. Time Preference and Reversed Transfers;111
7.3.7;VI. A Geometrical Explanation and Extension of the Results;113
7.3.8;REFERENCES;128
7.4;CHAPTER 4. SOME PROBLEMS OF STABILIZATION POLICY UNDER FLOATING EXCHANGE RATES;130
7.4.1;I. Introduction;130
7.4.2;Ð. Policy Considerations for a Single Country;133
7.4.3;III. The " n – 1" Problem;139
7.4.4;IV. Conclusion;144
7.4.5;REFERENCES;145
7.5;CHAPTER 5. DEVALUATION AND THE BALANCE OF TRADE UNDER FLEXIBLE WAGES;148
7.5.1;Introduction;148
7.5.2;Symbols;150
7.5.3;I. A Macromodel of an Open Economy;150
7.5.4;II. The Component Markets;153
7.5.5;III. Devaluation;157
7.5.6;IV. Comparison and Synthesis;163
7.5.7;V. Summary and Conclusions;169
7.5.8;ACKNOWLEDGMENTS;170
7.5.9;REFERENCES;170
7.6;CHAPTER 6. ON THE ANALYTICAL FRAMEWORK OF TARIFFS AND TRADE POLICY;172
7.6.1;I. Introduction;172
7.6.2;II. Basic Model;174
7.6.3;III. Domestic Distortions;183
7.6.4;IV. Nontraded Commodities;187
7.6.5;ACKNOWLEDG MENTS;196
7.6.6;REFERENCES;196
8;Part II: MATHEMATICAL ECONOMICS;198
8.1;CHAPTER 7. STABILITY INDEPENDENT OF ADJUSTMENT SPEED;200
8.1.1;I. Introduction;200
8.1.2;II. Real Characteristic Roots of Products of Positive Diagonal and P Matrices;203
8.1.3;III. Some Notes on Connected Sets;207
8.1.4;IV. Location of Characteristic Roots of Matrices;210
8.1.5;V. Constancy of the Inertia of a Matrix;212
8.1.6;VI. Conditions That DX and D Have the Same Number of Characteristic Roots with Zero Real Part;214
8.1.7;VII. A General Class of Matrices for Which the Inertia of DX Is Equal toThat of D;217
8.1.8;ACKNOWLEDGMENT;220
8.1.9;REFERENCES;220
8.2;CHAPTER 8. A CLASS OF GENERALIZED METZLERIAN MATRICES;222
8.2.1;ACKNOWLEDGMENTS;238
8.2.2;REFERENCES;238
8.3;CHAPTER 9. HYSTERESIS OF LONG-RUN EQUILIBRIUMFROM REALISTIC ADJUSTMENT COSTS;240
8.3.1;I. Introduction;240
8.3.2;II. Assumptions, Notation, Conclusions;241
8.3.3;III. Example 1;243
8.3.4;IV. Example 2;248
8.3.5;V. Example 3;251
8.3.6;VI. Final Remarks;255
8.3.7;ACKNOWLEDGMENTS;260
8.3.8;REFERENCES;260
8.4;CHAPTER 10. STABILITY IN AN ECONOMY WITH PRODUCTION;262
8.4.1;I. Production and Gross Substitutes;262
8.4.2;II. The Economy;264
8.4.3;III. Stabilizing Income Effects;266
8.4.4;IV. On an Arrow–Hahn Conjecture;270
8.4.5;V. The Leontief Model;273
8.4.6;ACKNOWLEDGMENTS;276
8.4.7;REFERENCES;276
8.5;CHAPTER 11. STABILITY OF MARKETS WITH PUBLIC GOODS: A Case of Gross Substitutability;278
8.5.1;ACKNOWLEDGMENTS;286
8.5.2;REFERENCES;286
8.6;CHAPTER 12. MARX AS MATHEMATICAL ECONOMIST: Steady-State and Exponential Growth Equilibrium;288
8.6.1;Introduction;288
8.6.2;I. Two Claims to Fame;289
8.6.3;II. Simple Reproduction;291
8.6.4;III. Balanced Expanding Reproduction;295
8.6.5;IV. A Digression on Morishima's Alternative to Marx;298
8.6.6;V. Marx as Advancer of Mainstream-Economics Analytical Technique;299
8.6.7;VI. Living in Marx's Skin: Numerical Examples Generalized;300
8.6.8;VII. Handling Marx's Underlying Technology;302
8.6.9;VIII. Indeterminacy of Wage and Distributive Shares?;305
8.6.10;IX. The Number One Issue in Appraising Karl Marx's Theoretical Innovations;307
8.6.11;X. Final Summing Up;311
8.6.12;Appendix;311
8.6.13;ACKNOWLEDG M ENTS;324
8.6.14;REFERENCES;324
9;Part IIII: NVENTORY FLUCTUATIONS;328
9.1;CHAPTER 13. AGGREGATE INVENTORY BEHAVIOR: A Critical Study of a Class of Models;330
9.1.1;Introduction;330
9.1.2;I. The Basic Model;331
9.1.3;II. A More Complete Model;336
9.1.4;III. A Preliminary Test for Consistency;343
9.1.5;IV. Conclusion;348
9.1.6;REFERENCES;350
9.2;CHAPTER 14. INVENTORIES AND THE GENERALIZED ACCELERATOR;352
9.2.1;I. Introduction;352
9.2.2;II. Data;354
9.2.3;III. Demand Forecasts;355
9.2.4;IV. Buffer Stocks;356
9.2.5;V. Materials and Supplies;364
9.2.6;VI. Conclusions;371
9.2.7;REFERENCES;372
9.3;CHAPTER 15. MONETARY POLICY AND THEINVENTORY CYCLE;374
9.3.1;Introduction;374
9.3.2;I. The Model;375
9.3.3;II. Dynamic Properties of the Deterministic Model;378
9.3.4;III. The Optimal Simple Rule: Deterministic Case;382
9.3.5;IV. Stochastic Complications;386
9.3.6;V. Summary and Conclusions;388
9.3.7;ACKNOWLEDGMENTS;389
9.3.8;REFERENCES;389
10;Part IV: MACROMONETARY THEORY;392
10.1;CHAPTER 16. IS-LM AS A DYNAMIC FRAMEWORK;394
10.1.1;Introduction;394
10.1.2;I. The Hicksian IS–LM Analysis;395
10.1.3;II. Financial Underpinnings;397
10.1.4;III. Disequilibrium in the Financial Markets;403
10.1.5;IV. IS–LM Dynamics;408
10.1.6;V. Summary;416
10.1.7;Appendix;417
10.1.8;ACKNOWLEDGMENTS;417
10.1.9;REFERENCES;417
10.2;CHAPTER 17. THE DYNAMICS OF INTEREST RATE ADJUSTMENT IN A KEYNESIAN MACROECONOMIC MODEL;420
10.2.1;Introduction;420
10.2.2;I. The Postulates, Nontâtonnement Dynamics, and Walras' Law;421
10.2.3;II. Structure of the Model;426
10.2.4;III. Comparative Statics, Stability, and Dynamics;432
10.2.5;IV. Summary;440
10.2.6;Appendix A. Walras' Law for Flows;441
10.2.7;Appendix B. Derivation of Equation (38);442
10.2.8;ACKNOWLEDGMENTS;443
10.2.9;REFERENCES;443
10.3;CHAPTER 18. THE THEORY OF MONEY AND INCOME CONSISTENT WITH ORTHODOX VALUE THEORY;446
10.3.1;Introduction;446
10.3.2;I. The Theory of Money Consistent with Orthodox Value Theory;448
10.3.3;II. The Theory of Income Determination Consistent with Orthodox ValueTheory;461
10.3.4;III. Conclusion;470
10.3.5;ACKNOWLEDGMENTS;471
10.3.6;REFERENCES;471
10.4;CHAPTER 19. MONETARY THEORY AND ECONOMIC CONSOLIDATIONS;474
10.4.1;ACKNOWLEDGMENTS;503
10.4.2;REFERENCES;503
11;Part V: GROWTH;504
11.1;CHAPTER 20. MONEY, GROWTH, AND THE PROPENSITY TO SAVE: An Iconoclastic View;506
11.1.1;Introduction;506
11.1.2;I. Financial Structure and Monetary Policy;508
11.1.3;II. The Saving Function;512
11.1.4;III. A Harrod–Domar Growth Model with a Variable Propensity to Save;515
11.1.5;IV. Concluding Notes and Empirical Observations;518
11.1.6;ACKNOWLEDGMENTS;520
11.1.7;REFERENCES;520
11.2;CHAPTER 21. ECONOMIC GROWTH AND STAGES OF THE BALANCE OF PAYMENTS: A Theoretical Model;522
11.2.1;Introduction;522
11.2.2;I. The Production, Consumption, and Trade Relationships;523
11.2.3;II. The Characteristics of the Steady State;526
11.2.4;III. The Dynamic Behavior of the System;528
11.2.5;IV. Conclusions;534
11.2.6;Appendix. Derivation of Time Paths of Net Holdings of Foreign Securities and the Capital Account;535
11.2.7;ACKNOWLEDGMENTS;539
11.2.8;REFERENCES;539
11.3;CHAPTER 22. ON THE DYNAMIC STABILITY OF ECONOMIC GROWTH: The Neoclassical versus Keynesian Approaches;542
11.3.1;I. Introduction;542
11.3.2;II. Basic Assumptions of the Neoclassical Growth Theory;543
11.3.3;III. Dynamic Equilibrium of the Neoclassical Model;547
11.3.4;IV. The Neoclassical Theory of Monetary Growth;548
11.3.5;V. A Keynesian Theory of Economic Growth;556
11.3.6;VI. Keynesian Growth under Full Employment;566
11.3.7;VII. Concluding Remarks;570
11.3.8;ACKNOWLEDGMENTS;571
11.3.9;REFERENCES;571
12;Author Index;573