Clower’s Dual-Decision Hypothesis is economics

Cheng K. Wu ()
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Cheng K. Wu: Growonders Corp., USA.

Turkish Economic Review, 2018, vol. 5, issue 1, 83-88

Abstract: Though Wu (2017) has shown Clower’s Dual Decision Hypothesis leading to Keynes’ change in saving (and disequilibrium) conclusion, it is important to compare Clower’s budget constraint approach with other models, including those found in Hall’s consumption theorem and similar approach. In Clower, by assuming that, consumers may not satisfy the budget constraint, one cannot automatically assume Hall’s consumption theorem to hold. And, by showing how households need to optimize contingent on the satisfaction of their budget constraint, Clower was, in effect, creating a feedback mechanism.

Keywords: Keynes; Clower; Keynesian; Disequilibrium; Dual Decision Hypothesis; Consumption; Martingale; Saving; Growth; Income; Trade; Feedback. (search for similar items in EconPapers)
JEL-codes: A10 B2 B22 C20 E20 E60 F00 J00 N10 (search for similar items in EconPapers)
Date: 2018
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