We consider whether the introduction of the psychological concept of loss aversion into agents' preferences could generate a macroeconomic model in which changes in the money supply can have real, persistent effects. It is demonstrated that the macroeconomic implications of loss aversion depend...

This paper compares a form of endogenous preferences introduced by Uzawa with additive preferences by simulating the optimal consumption response for a small open economy to permanent and temporary shocks to the world rate of interest. Uzawa preferences, by endogenising the rate of time...

This paper develops a model of the trade cycle based on the ideas if Nicholas Kaldor. The model is shown to generate an endogenous cycle in which the economy recovers from recession automatically even elthough the money wage is fixed.out technology.

The paper extends the theory of trade unions. In past studies, the union members derive utility exclusively from the consumption of goods produced in markets. We consider the case where the union insider is a member of a household which derives utility both from market produced goods and from a...

By simulating a model of the optimal level of saving in a small open economy, this paper calculates the levels of optimal national saving, investment and the current account balance for five Asian countries, Hong Kong, Japan, Singapore, Malaysia and Philippines, for the period from 1997 to 2050....

By simulating a model of the optimal level of saving in a small open economy, this paper calculates the levels of optimal national saving for Australia for the period from 1997 to 2051. The calculations focus on the implications of making allowance for the ageing structure of the population. The...

This paper makes new projections of government social outlays for Australia. The calculations suggest that government social outlays will increase considerably as a percent of GDP over the next 50 years, by 7.3 percent of GDP in the base case. This is a greater increase than that found by...

In this paper a model is developed which determines the socially optimal level of saving for a small open economy. The model also determines the socially optimal disposition of saving between domestic capital accumulation and overseas asset accumulation.