This paper examines the consequences of capital and labour subsidies for employment, capital formation and other macroeconomic variables within an OLG small open economy model of wealth accumulation. Two cases, the neoclassical-equilibrium one and the modern-equilibrium one, have been analysed....

This paper introduces the age structure of the population into the analysis of medium term unemployment swings. We incorporate age-related features into the Shapiro-Stiglitz shirking model and find that the observed age pattern of unemployment can be explained in terms of the model. Moreover, we...

China's trade surplus with the U.S. is now more than a quarter of the U.S. trade deficit and, with China growing faster than the U.S., raises questions about its future course. Some media commentators term the chronic trade surplus mercantilist but offer no persuasive motive for it. Academics...

The paper begins with a consideration of the hypothesis that public sector employment is a means to reduce the general unemployment rate. It then takes up the proposition that subsidizing domestic investment is an effective way to reduce unemployment. The rest of the paper addresses some of the...

We explore the effects of the tax structure in our version of the labor-turnover model of unemployment. We show that for a closed economy, a shift to increased payroll taxation offset by a lighter VAT rate raises the natural rate of unemployment. However, for a small open economy whose interest...

It was a huge mistake to see monetary policy as a static problem of engineering the desired balance between unemployment and inflation. The cyclical phases of economic expansion and contraction do not repeat themselves the same way twice in a row, so the monetary and fiscal remedies that worked...

The lesson drawn from the crash of 1929 was the need for regulatory reform. In the United States, regulations were enacted to reduce the vulnerability of investors, lenders, banks, companies, and workers to unanticipated swings in financial markets. The lesson drawn from the recent spectacle –...

This paper comments on: The Many Contributions of Edmund Phelps: American Economic Association Luncheon Speech Honoring the 2006 Nobel Laureate in Economics by James J. Heckman which can be found at: "http://ssrn.com/abstract=2209241" http://ssrn.com/abstract=2209241, Ned Phelps - The Economist:...

This paper, adapted from a presentation at the Center on Capitalism and Society in November 2021, is in three parts. The first notes the demands being made by various groups of actors in the economy. The second, recalling the principles of Frank Ramsey on the optimum national saving and John...