Modern mainstream economics builds on neoclassical economics but with many refinements that either supplement or generalize earlier analysis, such as econometrics, game theory, analysis of market failure and imperfect competition, and the neoclassical model of economic growth for analysing long-run variables affecting national income.
42.
The reason for this is that imperfect competition in the output market tends to reduce the real wage, leading to the household substituting away from lump-sum taxation causes both leisure and consumption to decrease ( assuming that they are both a normal good ).
43.
However the theory became very important to neo-Marxists such as Ernest Mandel who interpreted late capitalism as a form of increasingly parasitic rentier capitalism in which surplus profits are obtained by capitalists from monopolising the access to resources, assets and technologies under conditions of imperfect competition.
44.
A new impetus was given to the field when around 1933 Joan Robinson and Edward H . Chamberlin, published respectively, " The Economics of Imperfect Competition " ( 1933 ) and " The Theory of Monopolistic Competition " ( 1933 ), introducing models of imperfect competition.
45.
A new impetus was given to the field when around 1933 Joan Robinson and Edward H . Chamberlin, published respectively, " The Economics of Imperfect Competition " ( 1933 ) and " The Theory of Monopolistic Competition " ( 1933 ), introducing models of imperfect competition.
46.
Chamberlin published his book " The Theory of Monopolistic Competition " in 1933, the same year that Joan Robinson published her book on the same topic : " The Economics of Imperfect Competition ", so these two economists can be regarded as the parents of the modern study of imperfect competition.
47.
Chamberlin published his book " The Theory of Monopolistic Competition " in 1933, the same year that Joan Robinson published her book on the same topic : " The Economics of Imperfect Competition ", so these two economists can be regarded as the parents of the modern study of imperfect competition.
48.
In 1987 British economist Huw Dixon ( 1958 ) published " A simple model of imperfect competition with Walrasian features ", the first work to demonstrate in a simple general equilibrium model that the fiscal multiplier could be increasing with the degree of imperfect competition in the output market, helping develop New Keynesian economics.
49.
In 1987 British economist Huw Dixon ( 1958 ) published " A simple model of imperfect competition with Walrasian features ", the first work to demonstrate in a simple general equilibrium model that the fiscal multiplier could be increasing with the degree of imperfect competition in the output market, helping develop New Keynesian economics.
50.
Market failure ( such as imperfect competition or externalities ) and some institutions of social decision-making ( such as government and tradition ) may lead to the wrong combination of goods being produced ( hence the wrong mix of resources being allocated between producing the two goods ) compared to what consumers would prefer, given what is feasible on the PPF.
