Following an analysis of the relation between a standard Steindlian model of stagnation and Steindl's own analysis, we modify the standard model by introducing endogenous changes in the mark-up and a reformulation of the investment function. These extensions, which address significant weaknesses...

This paper defends the Aggregate-Supply/Aggregate-Demand framework against recent criticisms by Barro and others. Using four models - a neoclassical-synthesis Keynesian, a monetarist mark I, a rational expectations/new classical, and a Kaleckian/post-Keynesian - based on this framework, it is...

Kaldor's Mattioli lectures analyse a two-sector model with increasing returns to scale (IRS) in industry and decreasing returns (DRS) in agriculture. This review article shows that (i) with IRS in industry a long-run equilibrium growth path with strictly positive growth rates may exist even if...

This paper analyses the links between egalitarian policy and unemployment and the possible use of asset-based redistribution to overcome the crisis of egalitarian policy. Contrary to left-Keynesian belief, egalitarian policies in the postwar period were not the means to ensure high aggregate...

Framing effects and bounded rationality imply that election campaigns may be an important determinant of election outcomes. This paper uses a two-party setting and simple game theoretic models to analyse the strategic interaction between the parties' campaign decisions. Alternations of power...

This paper presents a simple analytical model of the market for hard drugs. The key assumptions are (i) a distinction between new users and existing addicts, (ii) imperfect competition, (iii) selective marketing efforts towards potential users, and (iv) the existence of policy effects on...

The influence of NAIRU theory on economic policy is both puzzling and unfortunate, especially in a European context. This paper shows that standard rationality assumptions and objective functions may fail to generate a well-defined NAIRU in a unionized economy. It then presents two simple models...

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 shows that the existence and persistence of 'overeducation' can be explained by a simple 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...

Framing effects and bounded rationality imply that election campaigns may be an important determinant of election outcomes. This paper uses a two-party setting and simple game theoretic models to analyse the strategic interaction between the parties' campaign decisions. Alternations of power...