The Positive Aggregate-Demand Externalities of Producer-Consumer Households to Stabilize Aggregate Economic Fluctuations: A Comparison between Japan and the United States

Yoshihiro Maruyama and Tadashi Sonoda
Additional contact information
Yoshihiro Maruyama: University of Tsukuba
Tadashi Sonoda: Nagoya University

Chapter 9 in A Theory of the Producer-Consumer Household, 2011, pp 242-267 from Palgrave Macmillan

Abstract: Abstract A dual economy model of the New Keynesian type discussed in Chapter 7 reveals that producer-consumer households moderate the aggregate economic fluctuations in terms of both the employment of labor and also the demand for outputs in the economy where capitalist firms offer a higher than equilibrium rate of wage to use the resulting excess supply of labor as a worker discipline device (see, for example, Shapiro and Stiglitz, 1984 and Bulow and Summers, 1986). Can their stabilizing behavior be verified in actual records of the employment of labor and the demand for outputs? This problem is the subject of this chapter, which will draw on the population survey records and the national income and product accounts of Japan and the United States. These records are selected mainly for the convenience of access at the time this project was undertaken though they admittedly fail to give as accurate as desired an account of the production activity of individual members of each economy (see, for example, Eisner, 1989).

Keywords: Salary Worker; Consumer Durable; Positive Covariation; Negative Covariation; Original Unit (search for similar items in EconPapers)
Date: 2011
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:pal:palchp:978-0-230-34668-0_9

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230346680

DOI: 10.1057/9780230346680_9

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().