A Price-Theoretic Construction of the General Theory

Max Gillman

Working Papers from New South Wales - School of Economics

Abstract: The paper reconstructs the simple Keynesian IS-LM model form Keyne's (1930) theory of the aggregate price. It does by constructing the total cost and revenue functions that are implied by Keyne's theory of price. The paper points out how the price theory contains an incorrect definition of scarcity rent, how this infuses the simple Keynesian model, and how a lack of scarcity results. It also demonstrates how the cost-revenue interpretation can be corrected and used for economic analysis.

Keywords: ECONOMIC; MODELS (search for similar items in EconPapers)
JEL-codes: E12 (search for similar items in EconPapers)
Pages: 22 pages
Date: 1997
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fth:nesowa:97/04

Access Statistics for this paper

More papers in Working Papers from New South Wales - School of Economics THE UNIVERSITY OF NEW SOUTH WALES, SCHOOL OF ECONOMICS, P.O.B. 1 KENSINGTON, NEW SOUTH WALES 2033 AUSTRALIA.. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().