Pigou and modern business cycle theory
Article Abstract:
The theories of economist Pigou as expounded in his 1927 book 'Industrial Fluctuations' are very similar to modern business cycle concepts. Both approaches have emphasized the importance of competition and rationality. According to Pigou, business cycles are primarily caused by differences in profit expectations of entrepreneurs. These expectations are, in turn, caused by psychological and monetary factors. The other components of business cycles include non-perfect competition, labor market institutions and externalities.
Publication Name: Economic Journal
Subject: Economics
ISSN: 0013-0133
Year: 1996
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The costs of recession: a reply
Article Abstract:
Business cycle costs from an individual basis cannot be measured precisely. Among the issues to be considered are that costs are part of an individual's welfare and that his utility function and risks should also be considered. The recession cost measure as proposed by Clark, Leslie and Symons which are, in turn, based on the study by Robert Lucas, was justified as a standard textbook risk premium.
Publication Name: Economic Journal
Subject: Economics
ISSN: 0013-0133
Year: 1996
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Marshallian external economies
Article Abstract:
A study was conducted to evaluate the foundations of Marshallian external economies. The study focuses on the variables of increasing returns and competition in Mashallian economics and also considers an individual firm's life cycle and demand curve conditions. It is shown that an appreciation of Marshallian economics need a understanding of external economies for individual firms.
Publication Name: Economic Journal
Subject: Economics
ISSN: 0013-0133
Year: 1993
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