We consider a class of infinite‐horizon dynamic Markov economic models in which the parameters of utility function, production function, and transition equations change over time. In such models, the optimal value and decision functions are time‐inhomogeneous: they depend not only on state...

The neoclassical growth model assumes fixed labor supply and competitive labor markets. Is it harmless to ignore monopsonistic power in the neoclassical growth model? The paper argues that it is not, especially if a growth model needs to be consistent with the long-run dynamics of the labor...

1. "The Realism of Assumptions Does Matter: Why Keynes-Minsky Theory Must Replace Efficient Market Theory as the Guide to Financial Regulation Policy." In The Oxford Handbook of the Political Economy of Financial Crises, Gerald Epstein and Martin Wolfson, eds. New York: Oxford University Press,...

The book revisits the subject matter of macroeconomic theory in a two-sector disequilibrium model inspired by the structural theories of the business cycle developed by Tugan-Baranowski, Aftalion, Fanno, and Lowe. The functioning of each market is modeled following Hicks: the features of each...