The problem of what are the features of 'classical' macroeconomic theory before Keynes has been hotly debated. In the present paper I investigate Hicks's model (1937) of the classical school in some detail and compare it with the theory that can be extracted from Pigou's Theory of Unemployment. The aim is to pin down precisely what are the diferences as well as the similarities between the two 'classical' models proposed respectively by Hicks and Pigou. The plan of the paper is as follows. After an exposition of Hicks's classical model in both analytical and diagrammatic terms, I will propose a verbal as well as diagrammatic synthesis of Pigou's model recast in money terms so that it can properly be compared with Hicks's. Once this has been accomplished I will proceed to examine the equilibrium features of the two models to mark their diferent structures. Finally I will perform a few comparative statics exercises (change in money wages, changes in the money supply, etc.) to elucidate the diferent efects that as a consequence appear in the two models. The conclusion is that the two models, though sharing a common vision, appear to be somewhat diferent in several respects. Final remarks attempting to answer the questions posed in the introduction conclude the paper.
Scheda prodotto non validato
Scheda prodotto in fase di analisi da parte dello staff di validazione
|Titolo:||The classical macro theory of product and employment: Hicks or Pigou?|
DI MATTEO, MASSIMO (Corresponding)
|Citazione:||DI MATTEO, M. (2019). The classical macro theory of product and employment: Hicks or Pigou?. HISTORY OF ECONOMIC IDEAS, 27(1), 143-159.|
|Appare nelle tipologie:||1.1 Articolo in rivista|