Palacio Vera, Alfonso (2003) Capital accumulation, technical progress and wage flexibility : Keynes'approach to aggregate supply and demand analysis revisited. [Working Paper or Technical Report]
Official URL: http://eprints.ucm.es/6815/
The aggregate supply and demand model (AS-AD) posited by Keynes in the General Theory and elaborated by Weintraub and Davidson is analysed by inserting a CES production function. We perform a comparative statics analysis where the effects on the equilibrium level of employment and the price level of changes in a wide range of variables and parameters are worked out. The effect of changes in the money wage rate on the level of employment and the price level are found to be ambiguous. Finally, we argue that this approach provides a more consistent approach than conventional AS-AD analysis does.
|Item Type:||Working Paper or Technical Report|
|Additional Information:||JEL Classification: E12, E24, E31|
|Uncontrolled Keywords:||Capital, Aggregate supply and demand analysis, Involuntary employment, Technical progress, Capital accumulation and deflation|
|Subjects:||Social sciences > Economics > Money|
|Series Name:||Documentos de trabajo de la Facultad de Ciencias Económicas y Empresariales.|
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|Deposited On:||30 Nov 2007|
|Last Modified:||07 Dec 2011 12:59|
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