Nations and Households in Economic Growth

List of Contributors

Preface

Part I Microeconomic Foundations

The Measurement of Real Value Added


1. Introduction


2. Notation and Assumptions


3. Method I: Estimation of the Production Function for Real Value Added


4. Method I Modified: The Use of Duality Relations


5. Method II: Estimation of the Production Function for Gross Output and Measurement of Real Value Added from Output and Materials


6. Time Series Observations

References

Fortune, Risk, and the Microeconomics of Migration

Part I


1. Some Higher Moments in the Life of Man: A Paradigm


2. Eppur Si Muovono!

Part II


3. Movers and Searchers with Limited Means: A Formal Model


4. Determinants of the Effective Demand for Investment in Migration and Search

Part III


5. The Limits of Analogy


6. Why Are the Shapes of Offer Distributions Different?

Appendix

On Sufficient Conditions for the Existence of a Unique Maximum Solution

References

Does Economic Growth Improve the Human Lot? Some Empirical Evidence


1. The Concept and Measurement of Happiness


2. The Evidence


3. Interpretation


4. Summary and Concluding Observations

References

Additional Bibliography

Income-Related Differences in Natural Increase: Bearing on Growth and Distribution of Income


1. Differences in Natural Increase among Income Classes


2. Implications for Growth and Distribution of Income


3. Summary

References

An Economic Theory of Imperialism


1. Political Favor as a Commodity


2. Some Examples of Imperialist Behavior


3. Alternative Theories of Imperialism


4. Empirical Tests


5. Policy Implications

References

Does the Theory of Demand Need the Maximum Principle?

Precis


1. Introduction


2. The Role of Constraints in the Theory of Demand


3. The Relationships Between Changes in Constraints and Changes in Distributions


4. Implications for Market Phenomena


5. Extensions


6. Conclusions

Appendix A. Proof of Statement 19

Appendix B. Proof of Statement 20

Appendix C. Technical Notes

References

Are Men Rational or Economists Wrong?


1. Money Illusion


2. Time Illusion


3. Effort Illusion

References

Part II Macroeconomic Performance: Growth and Stability

Demand, Structural Change, and the Process of Economic Growth


1. Introduction


2. A Formal Model of Dualistic Development


3. The Role of Demand in the Dualistic Economy


4. Conclusions and Agenda for Future Research

Appendix A. Restatement of the Model in Per Capita Terms

Appendix B. Parameters and Initial Conditions for the Simulation Model

References

Monetary Policy in Developing Countries


1. Cyclical versus Secular Policy


2. Monetary Policy and Inflation


3. Inflation and Development


4. Development without Inflation


5. Money Creation as a Source of Government Revenue


6. Open Inflation Versus Repressed Inflation


7. Anticipated versus Unanticipated Inflation


8. The Rate of Money Creation


9. Prescription

References

Government: The Fourth Factor


1. The Title


2. The Neglect of Government: Traditional Economic Thought


3. The Changing American Economy


4. The Functions of the Governmental System


5. Government as a Factor of Production

References

What Became of the Building Cycle?


1. Building Cycles, Kuznets Cycles, and Business Cycles


2. Population Growth, Household Formation, and Housing Starts


3. Outline of the Housing Model


4. Some Model Predictions


5. Explaining Household Formation


6. An Endogenous Residential Building Cycle?


7. Conclusions

Appendix

References

Instability in Underdeveloped Countries: The Impact of the International Economy


1. A Bird's-Eye View of Recent Literature


2. Instability in LDCs in Comparison to More Mature Economies


3. Openness and Country Size


4. The Transmission Hypothesis: A Concluding Note

Appendix A

Appendix B

Appendix C. The Determinants of Instability: Separate Regressions for Developed and Developing Countries

References

Economic Indicator Analysis during 1969-1972


1. Leads and Lags


2. Severity of the Contraction 339


3. Forecasts with Leading Indicators


4. A Summing Up

References

The Dollar Standard and the Level of International Reserves


1. Introduction


2. False Analogies: Faulty Signals


3. The Role of the Banker


4. Gold Losses


5. When Is a Disequilibrium Not a Disequilibrium?


6. Conclusion

References

Long Swings and the Atlantic Economy: A Reappraisal


1. America's Weight in the Pre-l913 International Economy


2. A Model of the Atlantic Economy


3. Historical Evidence, 1879-1901


4. Long Swings in Productivity and Real Income


5. Conclusions

References

Author Index