SSRN Electronic Journal · 2000 · 22 citations · 0 references
Open access
Social SciencesEconomicsEconomic DevelopmentInternational TradePricing TheoryDynamic Economic ModelsEconomic GrowthGrowth TheoryProducer TheoryProduction FunctionsProduction TheoryAdam SmithEconomic Growth DynamicsInternational Trade EconomicsSectoral GrowthStructural Demographic Change
The book offers an original theoretical framework for sustaining full employment in a multisector economy with population growth and sector‑specific technical progress rates. It aims to analyze economic growth through the structural dynamics of production, prices, and employment. The authors examine full employment and capacity‑utilization conditions under price stability and inflation, using a vertically integrated sectoral approach rather than traditional input‑output relations. The analysis yields striking implications for a wide range of classic economic problems, including price theory, profit and interest rates, production theory, growth fluctuations, output composition, technology choice, and international trade.
First published in 1981 this book presents an original theoretical treatment of the problems of maintaining full employment in a multisector economic system with a growing population and different rates of technical progress in different sectors. The conditions for full employment and full capacity utilisation are examined when prices are stable and when there is inflation. This approach is carried out, not in terms of input-output relations, as has become customary in multisector models, but rather in terms of vertically integrated sectors. This makes it possible to analyse the economic growth process in terms of the structural dynamics of production, of prices and of employment. Remarkable implications are drawn for a surprisingly large number of theoretical problems, which have been under discussion since Adam Smith: from price theory to the theory of rates of profit and the rates of interest; from production theory to the theories of fluctuating growth, ever-changing composition of output, choice of technique and international trade.