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Normal Values and Average Values
Author(s) -
Park ManSeop
Publication year - 1997
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/1467-999x.00027
Subject(s) - economics , premise , path (computing) , econometrics , mathematical economics , mathematics , philosophy , computer science , programming language , linguistics
This essay discusses the implications of the idea that the Keynesian premise implies deviations between the normal and the average degrees of utilization. A system of equations called the ``average system'' is proposed for the study of average values, as distinct from normal values, by way of a hypothetical steady‐ state growth path for each sector. A long‐period implication of the short‐period under‐utilization of productive capacity is presented in terms of a two‐sector model.