This article considers the impact of minimum wage legislation on wages, employment and gross domestic product. Using the Liverpool quarterly model of the UK to calculate the total effects in the economy, the authors suggest that unemployment would increase along with the real wages of low paid...

Budget constraints are drawn up for annual hours and net pay, typically composed of two linear segments: 'benefit-constrained', where extra work forfeits benefit and 'normal', where extra work is subject to the standard marginal tax rate. There are additional linear segments for those on upper...

A model of profits switches between four regimes with fixed probabilities; the rationally expected profits stream implies the stock market value. This efficient market model is not rejected by UK post-war time-series behaviour of either profits or the FTSE index.