At Last, A Modern Theory of Labor Supply

The General Theory reorients fundamental macro causation. Nominal demand disturbances inducing same-direction changes in employment implies the scrapping of Keynes’s Second Classical Postulate. Any plausible model of the 1930s depression must break the beautiful W=VMP=MRS analytic strangle-hold imposed by the … 
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At Last, A Modern Theory of Wages

Consider two facts about textbook wage theory. First, it is little changed from its original construction by the great 19th century marginalists. Second, for at least 100 years, mainstream thinking has been badly out of step with the actual behavior … 
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