Recent claims, particularly in Paul Krugman’s column and blog, on the superiority of the Hicks-Modigliani version of Keynesian economics calls for a re-thinking of the issues raised in the early controversies over what Joan Robinson called ”bastard Keynesianism”. ”Good, old-fashioned,...

We introduce the results of a non-parametric estimate of the US wage Phillips Curve into a simplified version of the model of the wage-price spiral by Flaschel and Krolzig (2008). Making use of Okun’s law, the non-linearity in the wage inflation-employment relation translates into a...

This study assesses the role of Social Security (OASI) and Social Security Disability Insurance, 401(k) plans, unemployment insurance, Medicare, and the federal income tax system in moderating the business cycle in the United States. Using Instrumental Variable (IV) estimation, we demonstrate...

The US national income and product accounts are restated in the form of a social accounting matrix or SAM. Using data from the Congressional Budget Office and the Consumer Expenditure Survey of the Bureau of Labor Statistics, the SAM is extended to include seven household groups in the size...

What role should the government play in financing the arts in America? A wealth of research has been dedicated to whether lump sum government transfers to nonprofit organizations “crowd-out” private giving. However, little attention has been paid to the incidence of voter-approved cultural...

Thomas Piketty attributes increasing wealth inequality to the characteristics of a neoclassical aggregate production function, which is known not to exist. A more plausible narrative is that wage repression can lead to secular stagnation by enriching the rentier. Lower economic activity...

There are two stories about the economic status of elderly people in the United States and both cannot be right. The first focuses on the great economic gains of the elderly in the last few decades, particularly compared to other age groups, and relies heavily on the official measurement of...

As traditional pensions, or defined benefit (DB) plans, are replaced by defined contribution plans (DC), workers in New York City and in the nation have less retirement security. Coverage rates for employer plans are falling. Most DC retirement accounts are in the form of 401(k)-type plans -...

We discuss the effects of the stock market in the second part of the paper, which centers on the relation between stock prices and R&D investment. We examine Tobin’s (and Minsky’s) “q” theory and the implications it has for this investment, along with the relationship between innovation...

Nearly one-third of all American workers are paid very low wages, the highest rate among wealthy nations. An incidence of low pay at this level has obvious implications for the current standard of living for a substantial share of American families. But of particular concern are the implications...