Hardback
New Perspectives on Business Cycles
An Analysis of Inequality and Heterogeneity
9781852788001 Edward Elgar Publishing
Arguing that changes in the distribution of wealth and income in a private market economy can generate variations in the aggregate output, Professor Das uses a series of models to relate economic inequalities across households to fluctuations in the economy. In particular, he argues that severe inequities in wealth and income distribution can lead to fluctuations in a macroeconomy, with important implications for the financial markets. Empirical evidence from the post-war US economy is presented in support of this theory.
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Critical Acclaim
Contents
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Traditional aggregate theories of the business cycle, Keynesian or the neoclassical, have not succeeded in explaining the severe down turns in the United States and other advanced economies. New Perspectives on Business Cycles proposes a theory that economic inequality and heterogeneity in a market economy may be an important influence on business cycles. The author, Satya Das, provides for the first time a systematic assessment of possible links between business cycles and changes in the distribution of income and wealth.
Arguing that changes in the distribution of wealth and income in a private market economy can generate variations in the aggregate output, Professor Das uses a series of models to relate economic inequalities across households to fluctuations in the economy. In particular, he argues that severe inequities in wealth and income distribution can lead to fluctuations in a macroeconomy, with important implications for the financial markets. Empirical evidence from the post-war US economy is presented in support of this theory.
Arguing that changes in the distribution of wealth and income in a private market economy can generate variations in the aggregate output, Professor Das uses a series of models to relate economic inequalities across households to fluctuations in the economy. In particular, he argues that severe inequities in wealth and income distribution can lead to fluctuations in a macroeconomy, with important implications for the financial markets. Empirical evidence from the post-war US economy is presented in support of this theory.
Critical Acclaim
‘This interesting book argues that traditional aggregate theories of the business cycle have not succeeded in explaining the recent downturn in advanced Western economies, and proposes that economic inequality and heterogeneity are important influences on business cycles. . . . Overall this is a valuable contribution to the literature on business cycles which merits careful study.’
– Kenneth Holden, The Economic Journal
‘This book makes a strong contribution to economic science but not much to economic policy. It is an interesting and provocative reading primarily for economists who are involved with neoclassical macroeconomic modeling.’
– H. Sonmez Atesoglu, Southern Economic Journal
‘. . . the book deserves praise for illustrating the potential links between income inequality and business cycles with easily understood models and well-motivated examples. The sheer variety of models is impressive, providing scholars from any fields with an excuse to browse through and pick out a chapter of interest. The serious student of heterogeneity and business cycles will find all of it useful in understanding what is currently missing in business-cycle research and in deciding where to go from here.’
– Simon Gilchrist, Journal of Economic Literature
– Kenneth Holden, The Economic Journal
‘This book makes a strong contribution to economic science but not much to economic policy. It is an interesting and provocative reading primarily for economists who are involved with neoclassical macroeconomic modeling.’
– H. Sonmez Atesoglu, Southern Economic Journal
‘. . . the book deserves praise for illustrating the potential links between income inequality and business cycles with easily understood models and well-motivated examples. The sheer variety of models is impressive, providing scholars from any fields with an excuse to browse through and pick out a chapter of interest. The serious student of heterogeneity and business cycles will find all of it useful in understanding what is currently missing in business-cycle research and in deciding where to go from here.’
– Simon Gilchrist, Journal of Economic Literature
Contents
Contents: 1. Introduction 2. Basic Premises and Methodology 3. Inequality, Heterogeneity and Business Cycles in Models of Capital Accumulation 4. Heterogeneity, Redistributive Lobbying and Business Cycles 5. Firm Heterogeneity and Business Cycles 6. Inequality, Heterogeneity and Business Cycles via Aggregate Demand 7. Inequality, Demand for Stocks and Demand for Money 8. Inequality, and the Stability of the Banking Sector 9. Preliminaries: Available Data and Correlations 10. Linkage of Income Inequality to Aggregate Output, Unemployment, Demand for Money and Stock Price: Postwar US
