The Economy: A South Asian Perspective
←
Contents
The CORE team
The Economy: A South Asian Perspective
Read
The Economy: A South Asian Perspective
Bookmarks
Tap or select text, and then tap the bookmark icon to save a bookmark. Bookmarks are saved in your cache. Clearing cached data will remove them.
Your last visit
The last time you visited, you stopped reading here.
Search
Preface
Producing
The Economy: A South Asian Perspective
Table of contents
Endorsements for
The Economy: A South Asian Perspective
List of resources
Related articles
Einsteins
Great economists
How economists learn from facts
When economists disagree
Videos
Figures
1—The capitalist revolution
Introduction
1.1 Income inequality
1.2 Measuring income and living standards
1.3 History’s hockey stick: Growth in income
1.4 The permanent technological revolution
1.5 The economy and the environment
1.6 Capitalism defined: Private property, markets, and firms
1.7 Capitalism as an economic system
1.8 Capitalism, causation and history’s hockey stick
1.9 Varieties of capitalism: Institutions, government, and the economy
1.10 Colonialism
1.11 Economics and the economy
1.12 Conclusion
1.13 References
2—Technology, population, and growth
Introduction
2.1 Economists, historians, and the Industrial Revolution
2.2 Economic models: How to see more by looking at less
2.3 Basic concepts: Prices, costs, and innovation rents
2.4 Modelling a dynamic economy: Technology and costs
2.5 Modelling a dynamic economy: Innovation and profit
2.6 The British Industrial Revolution and incentives for new technologies
2.7 Malthusian Economics: Modelling output growth
2.8 Malthus and technology
2.9 Evidence for The Malthusian trap and long-term economic stagnation
2.10 Escaping from Malthusian stagnation
2.11 Conclusion
2.12 References
3—Work, scarcity, and choice
Introduction
3.1 Work and its forms
3.2 Labour and production
3.3 Preferences
3.4 Opportunity costs
3.5 The feasible set
3.6 Decision making and scarcity
3.7 Hours of work and economic growth
3.8 Income and substitution effects on hours of work and free time
3.9 Is this a good model?
3.10 Explaining our working hours: Changes over time
3.11 Explaining Women’s Labour Force Participation
3.12 Conclusion
3.13 References
4—Social interactions
Introduction
4.1 Social interactions: Game theory
4.2 Equilibrium in the invisible hand game
4.3 The prisoners’ dilemma
4.4 Social preferences: Altruism
4.5 Altruistic preferences in the prisoners’ dilemma
4.6 Public goods, free riding, and repeated interaction
4.7 Public good contributions and peer punishment
4.8 Behavioural experiments in the lab and in the field
4.9 Cooperation, negotiation, conflicts of interest, and social norms
4.10 Dividing a pie (or leaving it on the table)
4.11 Fair farmers, self-interested students?
4.12 Competition in the ultimatum game
4.13 Social interactions: Conflicts in the choice among Nash equilibria
4.14 Conflicts of interest in the global climate change problem
4.15 Conclusion
4.16 References
5—Property and power: Mutual gains and conflict
Introduction
5.1 Institutions and power
5.2 Evaluating institutions and outcomes: The Pareto criterion
5.3 Evaluating institutions and outcomes: Fairness
5.4 A model of choice and conflict
5.5 Technically feasible allocations
5.6 Allocations imposed by force
5.7 Economically feasible allocations and the surplus
5.8 The Pareto efficiency curve and the distribution of the surplus
5.9 Politics: Sharing the surplus
5.10 Bargaining to a Pareto-efficient sharing of the surplus
5.11 Angela and Bruno: The moral of the story
5.12 Measuring economic inequality
5.13 A policy to redistribute the surplus and raise efficiency
5.14 Conclusion
5.15 References
6—The firm: Owners, managers, and employees
Introduction
6.1 Firms, markets, and the division of labour
6.2 Other people’s money: The separation of ownership and control
6.3 Other people’s labour
6.4 Employment rents
6.5 Determinants of the employment rent
6.6 Work and wages: The labour discipline model
6.7 Wages, effort, and profits in the labour discipline model
6.8 Putting the model to work: Owners, employees, and the economy
6.9 The dual economy
6.10 Principals and agents: Interactions under incomplete contracts
6.11 Conclusion
6.12 References
7—The firm and its customers
Introduction
7.1 Economies of scale and the cost advantages of large-scale production
7.2 The demand curve and willingness to pay
7.3 Profits, costs, and the isoprofit curve
7.4 The isoprofit curves and the demand curve
7.5 Looking at profit maximization through marginal revenue and marginal cost
7.6 Gains from trade
7.7 The elasticity of demand
7.8 Costs and Output
7.9 Price-setting, market power, and public policy
7.10 Using demand elasticities in government policy
7.11 Prices, costs, and market failure
7.12 Conclusion
7.13 References
8—Supply and demand: Price-taking and competitive markets
Introduction
8.1 Buying and selling: Demand and supply in a competitive market
8.2 The market and the equilibrium price
8.3 Demand and supply in a competitive market: Bakeries
8.4 Competitive equilibrium: Gains from trade, allocation, and distribution
8.5 Changes in supply and demand
8.6 The world oil market
8.7 The effects of taxes
8.8 Price-setting and price-taking firms
8.9 Prices and quantities with an increase in demand
8.10 Conclusion
8.11 References
9—The labour market: Wages, profits, and unemployment
Introduction
9.1 The wage-setting curve, the price-setting curve, and the labour market
9.2 Measuring the economy: Employment and unemployment
9.3 The wage-setting curve: Employment and real wages
9.4. The firm’s hiring decision
9.5. The price-setting curve: Wages and profits in the whole economy
9.6 Wages, profits, and unemployment in the whole economy
9.7 How changes in demand for goods and services affect unemployment
9.8. Labour market equilibrium and the distribution of income
9.9. Labour supply, labour demand, and bargaining power
9.10. Labour unions: Bargained wages and the union voice effect
9.11 Labour market policies to address unemployment and inequality
9.12. Looking backward: Baristas and bread markets
9.13 Conclusion
9.14 References
10—Banks, money, and the credit market
Introduction
10.1 Money and wealth
10.2 Borrowing: Bringing consumption forward in time
10.3 Impatience and the diminishing marginal returns to consumption
10.4 Borrowing allows smoothing by bringing consumption to the present
10.5 Lending and storing: Smoothing and moving consumption to the future
10.6 Investing: Another way to move consumption to the future
10.7 Assets, liabilities, and net worth
10.8 Banks, money, and the central bank
10.9 The central bank, the money market, and interest rates
10.10 The business of banking and bank balance sheets
10.11 The central bank’s policy rate can affect spending
10.12 Credit market constraints: A principal–agent problem
10.13 Inequality: Lenders, borrowers, and those excluded from credit markets
10.14 Conclusion
10.15 References
11—Rent-seeking, price-setting, and market dynamics
Introduction
11.1 How people changing prices to gain rents can lead to a market equilibrium
11.2 How market organization can influence prices
11.3 Short-run and long-run equilibria
11.4 The value of an asset: Basics
11.5 Changing supply and demand for financial assets
11.6 Asset market bubbles
11.7 Modelling bubbles and crashes
11.8 Non-clearing markets: Rationing, queuing, and secondary markets
11.9 Markets with controlled prices
11.10 The role of economic rents
11.11 Conclusion
11.12 References
12—Markets, efficiency, and public policy
Introduction
12.1 Market failure: External effects of pollution
12.2 External effects and bargaining
12.3 External effects: Policies and income distribution
12.4 Property rights, contracts, and market failures
12.5 Public goods
12.6 Missing markets: Insurance and lemons
12.7 Incomplete contracts and external effects in credit markets
12.8 The limits of markets
12.9 Market failure and government policy
12.10 Conclusion
12.11 References
13—Economic fluctuations and unemployment
Introduction
13.1 Growth and fluctuations
13.2 Output growth and changes in unemployment
13.3 Measuring the aggregate economy
13.4 Measuring the aggregate economy: The components of GDP
13.5 How households cope with fluctuations
13.6 Why is consumption smooth?
13.7 Why is investment volatile?
13.8 Measuring the economy: Inflation
13.9 Conclusion
13.10 References
14—Unemployment and fiscal policy
Introduction
14.1 The transmission of shocks: The multiplier process
14.2 The multiplier model
14.3 Household target wealth, collateral, and consumption spending
14.4 Investment spending
14.5 The multiplier model: Including the government and net exports
14.6 Fiscal policy: How governments can dampen and amplify fluctuations
14.7 The multiplier and economic policymaking
14.8 The government’s finances
14.9 Fiscal policy and the rest of the world
14.10 Aggregate demand and unemployment
14.11 Conclusion
14.12 References
15—Inflation, unemployment, and monetary policy
Introduction
15.1 What’s wrong with inflation?
15.2 Inflation results from conflicting and inconsistent claims on output
15.3 Inflation, the business cycle, and the Phillips curve
15.4 Inflation and unemployment: Constraints and preferences
15.5 What happened to the Phillips curve?
15.6 Expected inflation and the Phillips curve
15.7 Supply shocks and inflation
15.8 Monetary policy
15.9 The exchange rate channel of monetary policy
15.10 Demand shocks and demand-side policies
15.11 Macroeconomic policy before the global financial crisis: Inflation-targeting policy
15.12 Another reason for rising inflation at low unemployment
15.13 Conclusion
15.14 References
Glossary
Bibliography
Leibnizes
2.2.1 Introducing the Leibnizes
2.7.1 The production function
3.1.1 Average and marginal productivity
3.1.2 Diminishing marginal productivity
3.1.3 Concave and convex functions
3.2.1 Indifference curves and the marginal rate of substitution
3.4.1 Marginal rate of transformation
3.5.1 Optimal allocation of free time: MRT meets MRS
3.6.1 Modelling technological change
3.7.1 Mathematics of income and substitution effects
4.4.1 Altruistic preferences: Finding the optimal distribution
5.4.1 Quasi-linear preferences
5.4.2 Angela’s choice of working hours
5.7.1 Angela’s choice of working hours when she pays rent
5.8.1 The Pareto efficiency curve
6.6.1 The worker’s best response function
6.7.1 Profit, wages, and effort
7.3.1 Average and marginal cost functions
7.4.1 Isoprofit curves and their slopes
7.5.1 The profit-maximizing price
7.6.1 Marginal revenue and marginal cost
7.8.1 The elasticity of demand
8.4.1 The firm and market supply curves
8.4.2 Market equilibrium
8.5.1 Gains from trade
8.6.1 Shifts in demand and supply
11.8.1 Price bubbles
12.1.1 External effects of pollution
12.3.1 Pigouvian taxes
Copyright acknowledgements