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Capital accumulation, technical progress and wage flexibility : Keynes'approach to aggregate supply and demand analysis revisited


Palacio Vera, Alfonso (2003) Capital accumulation, technical progress and wage flexibility : Keynes'approach to aggregate supply and demand analysis revisited. [ Documentos de Trabajo de la Facultad de Ciencias Económicas y Empresariales; nº 12, 2003, ISSN: 2255-5471 ]

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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.

Tipo de documento:Documento de trabajo o Informe técnico
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JEL Classification: E12, E24, E31

Palabras clave:Capital, Aggregate supply and demand analysis, Involuntary employment, Technical progress, Capital accumulation and deflation
Materias:Ciencias Sociales > Economía > Dinero
Título de serie o colección:Documentos de Trabajo de la Facultad de Ciencias Económicas y Empresariales
Código ID:6815

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