Abstract
Neo-Keynesian quantity-constrained models1 show the implications for output and employment of trading at non-market-clearing prices. They share with the post-Keynesian approach the rejection of Walrasian equilibrium, though unlike the latter they do not reject the other features of neoclassical methodology. Neo-Keynesians want to obtain Keynesian-type results in models which conform to the neoclassical view that economic agents must be treated as rational maximising decision-makers and that the interdependencies between variables must be studied within a general-equilibrium framework. Neo-Keynesian models contain an explicit choice-theoretic basis for modelling individual agents’ behaviour which is then aggregated to yield macro behavioural relationships.
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References
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Further reading
Malinvaud [3], Hahn [7] and Grossman [14].
Copyright information
© 1982 Rosalind Levačić and Alexander Rebmann
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Levačić, R., Rebmann, A. (1982). Neo-Keynesian Quantity-Constrained Models. In: Macroeconomics. Palgrave, London. https://doi.org/10.1007/978-1-349-86044-9_17
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DOI: https://doi.org/10.1007/978-1-349-86044-9_17
Publisher Name: Palgrave, London
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