A Theory of the Producer-Consumer Household: The New Keynesian Perspective on Self-Employment

摘要

This book is a mathematical treatise on self-employing, producer-consumer households in a New Keynesian framework. As with all New Keynesian models, there is friction in the market place, that is, at least one market does not clear in a perfectly competitive manner. Here, the labor market displays imperfections. Capitalist firms pay a higher than market clearing wage to evoke discipline over workers (Shapiro and Stiglitz 1984). All other markets behave competitively although the authors give an example of the case where the capital market behaves imperfectly. The many mathematical expositions are thoroughly grounded in microeconomic foundations particularly in regard to producer-consumer households.