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Trade, Stability, and Macroeconomics
Essays in Honor of Lloyd A. Metzler
1st Edition - January 1, 1974
Editors: George Horwich, Paul A. Samuelson
eBook ISBN:9781483267487
9 7 8 - 1 - 4 8 3 2 - 6 7 4 8 - 7
Trade, Stability, and Macroeconomics: Essays in Honor of Lloyd A. Metzler provides information pertinent to the fundamental aspects of trade, stability, and macroeconomics. This… Read more
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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.
List of Contributors
Introduction
Part I International Trade Theory
The Metzler Tariff Paradox: Extensions to Nontraded and Intermediate Commodities
Introduction
I. The Metzler Analysis in the Traditional Case
II. Nontraded Goods: The Home Country Reaction
III. Nontraded and Intermediate Goods: The Elasticity of the Foreign Offer Curve
IV. Concluding Remarks
Appendix
References
The Transfer Problem Once Again
I. Introduction
II. General Formulation
III. The Case of Single-Valued Supply Functions: Some General Results
IV. The Case of Pure Exchange
V. The Transfer Problem with Production
Appendix A. The Three-Factor Case
Appendix B. The Effect of a Transfer on the Relative Prices of the Two Domestic Commodities
Appendix C. Classes of Utility Functions That Satisfy the Hypothesis of Neutral Tastes
References
The Welfare Economics of Reversed International Transfers
Introduction
I. The Cobb-Douglas Utility Function
II. Reversed Transfer, Case 1: Transfer Specified in Domestic Product
III. Reversed Transfer, Case 2: Transfer Specified in Foreign Product
IV. Summary of Results
V. Time Preference and Reversed Transfers
VI. A Geometrical Explanation and Extension of the Results
Appendix I. Some Numerical Results
Appendix II. A Postscript
References
Some Problems of Stabilization Policy under Floating Exchange Rates
I. Introduction
II. Policy Considerations for a Single Country
III. The "n-1" Problem
IV. Conclusion
References
Devaluation and the Balance of Trade under Flexible Wages
Introduction
Symbols
I. A Macromodel of an Open Economy
II. The Component Markets
III. Devaluation
IV. Comparison and Synthesis
V. Summary and Conclusions
References
On the Analytical Framework of Tariffs and Trade Policy
I. Introduction
II. Basic Model
III. Domestic Distortions
IV. Nontraded Commodities
References
Part II Mathematical Economics
Stability Independent of Adjustment Speed
I. Introduction
II. Real Characteristic Roots of Products of Positive Diagonal and P-Matrices
III. Some Notes on Connected Sets
IV. Location of Characteristic Roots of Matrices
V. Constancy of the Inertia of a Matrix
VI. Conditions That DX and D Have the Same Number of Characteristic Roots with Zero Real Part
VII. A General Class of Matrices for Which the Inertia of DX Is Equal to That of D
References
A Class of Generalized Metzlerian Matrices
References
Hysteresis of Long-Run Equilibrium from Realistic Adjustment Costs
I. Introduction
II. Assumptions, Notation, Conclusions
III. Example 1
IV. Example 2
V. Example 3
VI. Final Remarks
Appendix A. Derivation of Optimal Trajectories for Individual Firm or Industry
Appendix B. Speculative Pricing
References
Stability in an Economy with Production
I. Production and Gross Substitutes
II. The Economy
III. Stabilizing Income Effects
IV. On an Arrow-Hahn Conjecture
V. The Leontief Model
References
Stability of Markets with Public Goods: A Case of Gross Substitutability
References
Marx as Mathematical Economist: Steady-State and Exponential Growth Equilibrium
Introduction
I. Two Claims to Fame
II. Simple Reproduction
III. Balanced Expanding Reproduction
IV. A Digression on Morishima's Alternative to Marx
V. Marx as Advancer of Mainstream-Economics Analytical Technique
VI. Living in Marx's Skin: Numerical Examples Generalized
VII. Handling Marx's Underlying Technology
VIII. Indeterminacy of Wage and Distributive Shares?
IX. The Number One Issue in Appraising Karl Marx's Theoretical Innovations
X. Final Summing Up
Appendix
References
Part III Inventory Fluctuations
Aggregate Inventory Behavior: A Critical Study of a Class of Models
Introduction
I. The Basic Model
II. A More Complete Model
III. A Preliminary Test for Consistency
IV. Conclusion
References
Inventories and the Generalized Accelerator
I. Introduction
II. Data
III. Demand Forecasts
IV. Buffer Stocks
V. Materials and Supplies
VI. Conclusions
Appendix. Definition of Variables
References
Monetary Policy and the Inventory Cycle
Introduction
I. The Model
II. Dynamic Properties of the Deterministic Model
III. The Optimal Simple Rule: Deterministic Case
IV. Stochastic Complications
V. Summary and Conclusions
References
Part IV Macromonetary Theory
IS-LM as a Dynamic Framework
Introduction
I. The Hicksian IS-LM Analysis
II. Financial Underpinnings
III. Disequilibrium in the Financial Markets
IV. IS-LM Dynamics
V. Summary
Appendix
References
The Dynamics of Interest Rate Adjustment in a Keynesian Macroeconomic Model
Introduction
I. The Postulates, Nontâtonnement Dynamics, and Walras' Law
II. Structure of the Model
III. Comparative Statics, Stability, and Dynamics
IV. Summary
Appendix A. Walras' Law for Flows
Appendix B. Derivation of Equation (38)
References
The Theory of Money and Income Consistent with Orthodox Value Theory
Introduction
I. The Theory of Money Consistent with Orthodox Value Theory
II. The Theory of Income Determination Consistent with Orthodox Value Theory
III. Conclusion
References
Monetary Theory and Economic Consolidations
References
Part V Growth
Money, Growth, and the Propensity to Save: An Iconoclastic View
Introduction
I. Financial Structure and Monetary Policy
II. The Saving Function
III. A Harrod-Domar Growth Model with a Variable Propensity to Save
IV. Concluding Notes and Empirical Observations
References
Economic Growth and Stages of the Balance of Payments: A Theoretical Model
Introduction
I. The Production, Consumption, and Trade Relationships
II. The Characteristics of the Steady State
III. The Dynamic Behavior of the System
IV. Conclusions
Appendix. Derivation of Time Paths of Net Holdings of Foreign Securities and the Capital Account
References
On the Dynamic Stability of Economic Growth: The Neoclassical Versus Keynesian Approaches
I. Introduction
II. Basic Assumptions of the Neoclassical Growth Theory
III. Dynamic Equilibrium of the Neoclassical Model