IDEAS home Printed from https://ideas.repec.org/a/cup/jhisec/v39y2017i02p257-270_00.html
   My bibliography  Save this article

€Œrelative Movements Of Real Wages And Output†€”How Does Keynes’S 1939 Essay Relate To His Theory Of Effective Demand?

Author

Listed:
  • Hartwig, Jochen

Abstract

John Maynard Keynes’s essay “Relative Movements of Real Wages and Output†is widely believed to be an important amendment to his General Theory because, in this essay, Keynes relaxed his core assumption of decreasing marginal returns to labor. I discuss the reasons that prompted Keynes to do so and then examine the consequences of replacing decreasing with non-decreasing returns for the model of effective demand from chapter 3 of the General Theory. I conclude that non-decreasing marginal returns do not sit comfortably with the principle of effective demand. The view that Keynes’s 1939 essay constitutes an important amendment to his General Theory has thus to be put into perspective.

Suggested Citation

  • Hartwig, Jochen, 2017. "€Œrelative Movements Of Real Wages And Output†€”How Does Keynes’S 1939 Essay Relate To His Theory Of Effective Demand?," Journal of the History of Economic Thought, Cambridge University Press, vol. 39(2), pages 257-270, June.
    • Handle: RePEc:cup:jhisec:v:39:y:2017:i:02:p:257-270_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1053837217000074/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jhisec:v:39:y:2017:i:02:p:257-270_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/het .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.