Human agency and material welfare : revisions in microeconomics and their implications for public policy

Resource Information

The work Human agency and material welfare : revisions in microeconomics and their implications for public policy represents a distinct intellectual or artistic creation found in European University Institute. This resource is a combination of several types including: Work, Language Material, Books.

Label

Human agency and material welfare : revisions in microeconomics and their implications for public policy

Title remainder

revisions in microeconomics and their implications for public policy

Statement of responsibility

by Morris Altman

Creator

• Altman, Morris

Subject

• Economics
• Endogenous growth (Economics)
• Microeconomics

Language

eng

Summary

"Some of the fundamental tenets of conventional economic wisdom, which have had a profound impact on public policy, are challenged in this book. These precepts include the affirmation that low wages are more beneficial that high wages to the process of growth and development; convergence in terms of output per person is just a matter of time; minimum wage laws and trade unions negatively impact on the economy as a whole; pay inequality due to labor market discrimination cannot persist over time; larger firms are typically more efficient than smaller firms; and culture is of little consequence to the course of economic development. Such predictions, the author argues, are a product of unrealistic behavioral assumptions about the economic agent. In this book, the author offers a more inclusive theoretical framework and a more reasonable modeling of the economic agent. This new approach is built upon conventional neoclassical theory while incorporating the most recent research in behavioral economics. The case is made that individuals have some choice over the quantity and quality of effort which they can supply in the process of production. Even under the constraints of severe product market competition and the assumption of ùtility maximizing' individuals, effort need not be maximized, especially in firms characterized by antagonistic management-labor relations. This is especially true when relatively inefficient firms can remain competitive by keeping wages relatively low - low wages serve to protect such firms from more efficient firms. Alternatively, relatively high wage firms can remain competitive only if they become more productive. Under these assumptions, higher wages and factors contributing to higher wages can advance the performance of an economy while lower wages can have the opposite effect and cultural and institutional variables, by themselves, can affect the long run productivity and even the long run competitiveness of firms and economies. In summary, this book calls for a revised approach to the study of economics from a behavioral and socio-economic perspective, with significant consequences for public policy"--provided by publisher

Cataloging source

BTCTA

Dewey number

338.5

Illustrations

illustrations

Index

index present

Literary form

non fiction

Nature of contents

bibliography