An endogenous growth model of the revenue maximizing firm is here presented. It is demonstrated that, in a static analysis, a revenue maximizing firm in equilibrium equates the average product of labor to the wage rate. In a dynamic analysis, the maximization rule becomes the balance between the...

This manifesto challenges a pernicious orthodoxy that has gripped Europe's policy makers. It is that demand- and supply-side policies must have different aims, that a limited number of supply-side policies are to be devoted to fighting unemployment, and that demand management (and particularly...