The Supply Side: Technology and History

摘要: It is my belief that the biggest weakness in mainstream economics throughout twentieth century has been lack of an adequate specification supply side. The demand side elegantly handled, both at micro level utility theory and consumer behavior (see for example survey by Deaton Muellbauer, 1980) macro Keynesian dynamics. On there detailed extensive investigation productive factors, but little commensurate work on output. Undergraduates are taught curves normally upward-sloping (though they may not be long run, or under extraordinary conditions) production functions convex; would hard-pressed to give any more fundamental account why should lie particular levels, their concavity take forms, so on. So many teachers.