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Does Clower’s Dual-Decision Hypothesis lead to the change in saving conclusion in Keynes’s General Theory?

Journal of Economics Library

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Title Does Clower’s Dual-Decision Hypothesis lead to the change in saving conclusion in Keynes’s General Theory?
 
Creator WU, Cheng K.;

Growonders Corp., USA.

. +27733506406

. cwucnspt@hotmail.com
 
Subject Keynes; Clower; Keynesian; Disequilibrium; Dual decision hypothesis; Consumption; Martingale.
A10; B20; B22; C20; E20; E60; F00.
 
Description Abstract. Keynes’ General Theory (1936) is probably the most challenging economics book ever written, with an abundance of hypotheses, concepts and theories.  Twenty five years after its publication, Clower proposed an insightful explanation on Keynes, the Dual-Decision Hypothesis (DDH).  Hall (1978) and Flavin (1981) seemingly reached the conclusion that, under certain conditions, consumption was independent of income.  In contrast, Wu (2016) has shown that, change in saving has to be a function of income growth.  In fact, applying Wu’s corrected consumption for period t+1, it is possible to show DDH equations leading to Keynes’ change in saving (and disequilibrium) conclusion.Keywords. Keynes, Clower, Keynesian, Disequilibrium, Dual decision hypothesis, Consumption, Martingale.JEL. A10,  B2, B22, C20, E20, E60, F00.
 
Publisher Journal of Economics Library
 
Contributor —
 
Date 2017-12-18
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.kspjournals.org/index.php/JEL/article/view/1497
10.1453/jel.v4i4.1497
 
Source Journal of Economics Library; Vol 4, No 4 (2017): December; 552-560
2149-2379
 
Language eng
 
Relation http://www.kspjournals.org/index.php/JEL/article/view/1497/1465
 
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