Download 25 Years of Economic Theory: Retrospect and prospect by W. F. Duisenberg (auth.), T. J. Kastelein, S. K. Kuipers, W. PDF

By W. F. Duisenberg (auth.), T. J. Kastelein, S. K. Kuipers, W. A. Nijenhuis, G. R. Wagenaar (eds.)

Almost 3 years handed because the school of Economics of the collage of Groningen celebrated its twenty fifth Anniversary in 1973. overdue, yet now not too overdue we are hoping, to provide the lectures of so much of our distinctive visitors, who got here from the us and diverse eu nations to notify the Congress individuals in their opinion and concepts on "25 Years of monetary concept: Retrospect and Prospect. " the issues we met in publishing the lectures, based on the contract we made with our site visitors, are usually not strange, as we all know who has been an editor of one of these quantity sooner than. The promise to offer a lecture and to write down it down afterwards to boot is way tougher to take care of than in basic terms to offer a speech. everyone understands there's not anything so terrifying as to be reminded of your promise to put in writing your lecture, in particular if just a type-written textual content, placed down from a tape, is at your disposal. you're convinced of your remembrance: "That very day I heard applause, there have been pleasant phrases and maybe a kingdom of now not finishing enthusiasm. And now I obtain this type-written textual content of my speech with a request, packed with innocence, of those pleasant committee contributors, "will you be so variety as to organize your textual content for booklet ']" yet this one, is that this my textual content? Unbelievable.

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Extra info for 25 Years of Economic Theory: Retrospect and prospect

Example text

Assume that one has only 100 goods and services. The quantities demanded have each to be related to 100 prices plus total means. Without making use of theoretical constraints and assumptions about the "collective" utility function one needs at least 100 observations for each variable to estimate the simplest function. These are rarely available and even if they are estimation will require the inversion of a matrix of 101 x 101, which is even for a modern fast computer still a considerable task.

BARTEN person "does not deserve a moment's consideration" of the economist. Economists are mostly concerned with aggregate or average behaviour. The paradigm is, however, completely about an individual. In one sense this is not a grave problem. One simply adds up individual demand to aggregate demand. In another sense this is not very satisfactory. The individual demand functions display a number of attractive properties. Can these properties be imposed on aggregate demand relations? There seems not too much of a problem for the homogeneity, symmetry and negativity conditions, but there are serious problems for the effect 'of income changes and the income effect of price changes.

Small nominal tariffs have been shown to BETWEEN THE SOUND AND THE SIMPLE-MINDED 43 disguise large effective rates of protection. One has been left with the that the question of tariffs has been much more important than had earlier been realized. At the same time that interest in these empirical estimates has been great, their validity has been questioned. The controversy has centered around two critical assumptions in the theory of effective rates of protection. In the first place, the effective rate is derived using a partial equilibrium approach: it is assumed that the general equilibrium repercussions of tariffs are zero.

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