This paper explains why mainstream equilibrium analysis is an unsuitable framework for explaining economic development. The authors present another approach. They apply it in the form of explanations of the two episodes of the post WWII era, golden age and what they refer to as the age of decline.

This paper explains why mainstream equilibrium analysis is an unsuitable framework for explaining economic development. The authors present another approach. They apply it in the form of explanations of the two episodes of the post WWII era, golden age and what they refer to as the age of decline.

Power and conflict play virtually no role in mainstream economics, the main reason being the pervasive influence of the competitive model and the difficulty in incorporating quantitavely in formal models. Following some preliminary remarks on power, we proceed to an historical explanation of the...

The estimates of productivity growth reported here show the contribution of various components of aggregate demand, including the positive role of low unemployment. The estimated equation was based on a model of growth and transformation, and was estimated using the longest period for which...