This article reviews some efficiency wage models and traces their alternative methodological and theoretical foundations. First, a distinction is made between models based on methodological individualism and models which, by taking the social determination of preferences seriously, go beyond the...

A 'disequilibrium' between saving and investment decisions determines a maladjustment in production, the disruption of capital, and a downturn in economic activity, according to the 'Austrian' approach. By contrast, the 'Dynamists' argue that it may lead to economic growth, as disequilibrium may...