Economic theory and policy: essays in honour of Dipak Banerjee/ Bhaskar Dutta et. al. eds.

Includes bibliography and index

Wage cuts and self-fulfilling beliefs -- Reflections on administered prices -- Deficit financing and the quantity theory of money -- On decentralization and increasing returns: Robinson Crusoe revisited -- A non-tatonnement process -- Envy -- On price characterization of optimal plans in a multi-sector economy -- growth, distribution and capital ownership; Kalecki and Pasinetti Revisited -- The wage premium, public activity and surplus labour -- Innovation games in vertical markets -- Should governments always encourage entry? -- Rank order competition and incentives: an organizational perspective -- Terms of trade, capital mobility and welfare -- The theory of devaluation for less developed economies: where do we stand? -- A Ricardian model of trade with demand constraints

Each of the fifteen contributions to this volume explores a particular area of economic theory, presenting fresh insights and analyses. The first three chapters, on macroeconomics and policy, study the effects of wage-cuts, administered prices, deficit financing and other monetary measures taken by the government. Part II discusses the economics of equilibrium and welfare, analysing the implications for decentralization in growth models with non-equilibrium prices. In Part III on economic growth, the question of decentralization is addressed from a different perspective. Part IV examines industrial organization - the effect of innovation incentives; the pros and cons of restrictions on firms entering an industry; and the question of competitive reward schemes within organizations. Finally, there are three studies in international economics: on the relationship between the terms of trade and the real income of an LDC which is trading with a developed country; the problems with traditional theories of devaluation when applied to LDCs; and the effects of free trade on unemployment.