This paper shows that the existence and persistence of ‘overeducation’ can be explained by an extension of the efficiency wage model. When calibrated to fit the amounts of overeducation found in most empirical studies, the model implies that both the relative wage and the relative employment...

The specification of the accumulation function is critical for the properties and implications of structuralist and post-Keynesian models. A large Kaleckian literat- ure assumes that investment is relatively insensitive to variations in the utilization rate of capital, and this extension of a...

This paper analyses the influence of norms of fairness on wage formation. Fairness is defined by `real-wage' and `relative-wage' norms that relate wage offers to workers' own current wage and to the wages of other groups of workers, and, to avoid shirking, firms pay fair wages. The wage norms...

This paper analyzes the interaction between financial and real variables in different time frames and monetary regimes. Firms finance investment through retained earnings, new issues, or bank loans, and households' desired portfolio of financial assets is related to current income flows. The...

This paper examines the dynamic implications of a shift in relative prices between traded and nontraded goods. In accordance with empirical evidence the authors allow for sluggish wage adjustment and increasing returns to scale in the traded goods sector. The presence of increasing returns to...

Human capital theory has been criticized for using an ordinal variable (human capital) as if it were cardinal (D. Leslie, 1995). It is shown in this note that this particular criticism is unwarranted: the use of human capital in the models discussed by Leslie satisfies Leslie's own criterion for...

This paper analyses the use of aggregate demand policies to ensure full- employment growth in the long run. The results support Victoria Chick's warning in Macroeconomics after Keynes against the misapplication of short-run Keynesian policy prescriptions to long-run problems.

This paper examines Steindl’s original 1952 model and relates it to subsequent stagnationist models. The model is then extended by introducing endogenous changes in the markup and a reformulation of the investment function. These extensions address weaknesses of the simpler models, find...

New information and communication technologies, we argue, have been 'power-biased': in many industries they have allowed firms to monitor workers more closely, thus reducing the power of these workers. An efficiency wage model shows that 'power-biased technical change' in this sense may generate...