This paper presents an analytical treatment of economic systems with an arbitrary number of agents that keeps track of the systems' interactions and agent's complexity. The formalism does not seek to aggregate agents: it rather replaces the standard optimization approach by a probabilistic...

This paper presents an analytical treatment of economic systems with an arbitrary number of agents that keeps track of the systems' interactions and agent's complexity. The formalism does not seek to aggregate agents: it rather replaces the standard optimization approach by a probabilistic...

We address a contention regarding capital deepening when the labor share of income declines and the elasticity of substitution is above unity between Karabarbounis and Neiman (2013) and Elsby et. al (2013). We demonstrate the incentive for technical change, which increases inequality and how...

The paper examines the effect of trade on income inequality in sub-Saharan Africa (SSA) countries. We employ a balanced panel of 11 countries covering 1980-2008 and use a fractional regression model for panel data as a method of estimation. The empirical results show that trade decreases income...

Research aimed at understanding cross-country income differences finds that inputs of human and physical capital play a limited role in explaining those differences. However, most of this work assumes workers with different education levels are perfect substitutes. Does moving away from this...

In this study, we examine if there is a linkage between the budget deficit (BD) and current account deficit (CAP). Traditional theory asserts that the BD leads to CAD, given that government expenditures are fixed. As disposable income increases due to BD (i.e., due to tax-cuts given that there...

The purpose of this article is to show that the ‘great recession’ of 2007 in the USA is of the classical type with basic features the rising value composition of capital which more than fully offset the rising rate of surplus value giving rise to a falling rate of profit. The tendential fall...

Using a simple framework, I reexamine the Hayashi and Prescott hypothesis (2006) that a barrier to labor mobility that maintained high agricultural employment was a cause of the stagnation in the prewar Japanese economy. I find that the labor misallocation between the agricultural and...

Robots are continuously transforming industrial production worldwide and thereby also inducing changes in a variety of production-related economic and social relations. While some observers call this transformation an unprecedented "revolution", others regard it as a common pattern of capitalist...

Global uncertainty shocks are associated with a sharp decline in global inflation, growth and interest rate. From 1981 to 2014, global financial uncertainty forecasts 18.26% and 14.95% of the variation in global growth and global inflation, respectively. Global uncertainty shocks exhibit more...