Keynes held that it was mainly current income that determined the demand for consumer goods and services. He also suggested wealth, interest rates, and taxes may have smaller effects. Later theories by Modigliani and Friedman, based on long term average income as the income variable determining...

This paper seeks to identify the major factors that affect the demand for investment goods in the United States. A review of Keynes’ theoretical literature on investment and previous empirical studies identified eight possible variables for testing. The testing procedure was stepwise linear...

Falling exchange rates reduce the purchasing power of the dollar, increasing import prices. Higher import prices have two effects. (1) A substitution effect that shifts demand from imported to domestically produced goods. (2) An income effect that reduces the total amount of real income...

Abstract. This paper presents a new approach for estimating the amount of carbonembodied in a product consumed in a given economy, taking account of where the inputsto that product were extracted and processed all along the supply chain. The method isgeneralized to apply to all factor inputs,...

The unit of analysis in empirical studies of the employment and wage effects of mergers and acquisitions is typically the plant or firm. In contrast, the unit of observation in this study is the individual worker, which allows us to provide direct, systematic empirical evidence on the effects of...

Falling exchange rates reduce the purchasing power of the dollar, increasing import prices. Higher import prices have two effects. (1) A substitution effect that shifts demand from imported to domestically produced goods. (2) An income effect that reduces the total amount of real income...

Falling exchange rates reduce the purchasing power of the dollar, increasing import prices. Higher import prices have two effects. (1) A substitution effect that shifts demand from imported to domestically produced goods. (2) An income effect that reduces the total amount of real income...

In the Keynesian consumption function, current income is asserted to be the main determinant of consumption. This paper examines the extent to which the Keynesian consumption function explains 1960 - 2000 U.S. consumption patterns. The results are compared to the longer term average income...

This article describes the contribution economists can make in uncovering energy choices capable of reducing carbon emissions on a global scale. All production and consumption activities involve the use of energy, and economists possess theoretical and analytic frameworks relating production and...

This paper examine the economics of the mega-greenhouse effect under two scenarios. One caps total CO2 levels and the other limits annual emission rates.