The Working of Econometric Models

This book reports the results of five empirical studies undertaken by Professor Morishima in collaboration with Professor Y. Murata, Professor T. Nosse and Professor M. Saito. It deals with applications of the general equilibrium models whose theoretical aspects have been one of Professor Morishima's main interests for several years. It also includes Professor Saito's independent work. Four main econometric models are constructed for the USA, the UK, and Japan. These are used as a basis for the discussion of recent topics in economic theory, such as: the existence and stability or instability of the neoclassical path of full employment growth equilibrium and a von Neumann-type path of balanced growth at constant proces; the antimony between price-stability and full employment; the Samuelson-LeChatelier principle; the theory of the balanced-budget multiplier; the three Hicksian laws of the gross substitutes system; the Brown-Jones super-multipliers of international trade, and so on. In addition, a quantitative evaluation is made for the US economy of monetary and fiscal policies as short-run measures for achieving full employment; the effectiveness of built-in flexibility of taxes in the UK economy is discussed; and estimates are made of the rapid decrease in disguised unemployment in Japan after the war.