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Property Rights, Markets and Economic Theory: Keynes versus Neoclassicism - again

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Author Info
JOHN F. HENRY
Abstract

This essay has two main objectives. Initially, I specify the relationship between neoclassical theory and the property rights regime on which that theory rests. In this portion of the argument I show that the property rights consistent with neoclassical theory are inconsistent with those of a monetary (or capitalist) economy-the economy the theory purports to explain. Further, I specify several contradictions in the theory itself when it attempts to examine rational resource allocation, money and the labor market. Secondly, I show that Keynes's General Theory rests on a fundamentally different foundation than that of neoclassicism. His views on money, the labor market, equilibrium, etc. are in radical opposition to those of orthodoxy. In addition, his theory does not share the same position on property rights. Because of these considerations, Keynes cannot be understood by those economists holding the neoclassical perspective.

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Article provided by Taylor and Francis Journals in its journal Review of Political Economy.

Volume (Year): 11 (1999)
Issue (Month): 2 (April)
Pages: 151-170
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:2:p:151-170

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  1. Galbraith, James K, 1997. "Time to Ditch the NAIRU," Journal of Economic Perspectives, American Economic Association, vol. 11(1), pages 93-108, Winter. [Downloadable!] (restricted)
  2. Davidson, Paul, 1972. "Money and the Real World," Economic Journal, Royal Economic Society, vol. 82(325), pages 101-15, March. [Downloadable!] (restricted)
  3. Furubotn, Eirik G & Pejovich, Svetozar, 1972. "Property Rights and Economic Theory: A Survey of Recent Literature," Journal of Economic Literature, American Economic Association, vol. 10(4), pages 1137-62, December. [Downloadable!] (restricted)
  4. Libecap, Gary D., 1986. "Property rights in economic history: Implications for research," Explorations in Economic History, Elsevier, vol. 23(3), pages 227-252, July. [Downloadable!] (restricted)
  5. Harold Demsetz, 1981. "Professor Michelman's Unnecessary and Futile Search for the Philosopher's Touchstone," UCLA Economics Working Papers 194, UCLA Department of Economics. [Downloadable!]
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