Search results
Results from the WOW.Com Content Network
In economics, the Pigou effect is the stimulation of output and employment caused by increasing consumption due to a rise in real balances of wealth, particularly during deflation. The term was named after Arthur Cecil Pigou by Don Patinkin in 1948.
Arthur Cecil Pigou (/ ˈ p iː ɡ uː /; 18 November 1877 – 7 March 1959) was an English economist.As a teacher and builder of the School of Economics at the University of Cambridge, he trained and influenced many Cambridge economists who went on to take chairs of economics around the world.
Pigou, on the other hand, presented a logical system where perfect competition occurs when firms produce at a level where marginal cost equals price. He explained that firms operate at less than full capacity due to falling demand curves and maximization of profits at a certain output level.
The economic system cannot be made self-adjusting along these lines. [12] And having come to the view that "a flexible wage policy and a flexible money policy come, analytically, to the same thing", he presents four considerations suggesting that "it can only be an unjust person who would prefer a flexible wage policy to a flexible money policy ...
The first postulate can be expressed in the equation y'(N) = W/p, where y(N) is the real output when employment is N, and W and p are the wage rate and price rate in money terms (and hence W/p is the wage rate in real terms). A system can be analysed on the assumption that W is fixed (i.e. that wages are fixed in money terms) or that W/p is ...
In all but a handful of states, employers are allowed to pay tipped workers below minimum wage — in some cases as little as $2.13 per hour — as long as they make enough in tips to earn the ...
They begin by defining terms. The gross wage reflects the pre-tax wage a laborer receives. [14] The simplest form of the net wage is the pre-tax wage minus the income tax. In reality, however, the net wage is the gross wage times one minus the tax rate, all divided by the price of consumption goods. With the status quo income tax, deadweight ...
WAYNE, Michigan (Reuters) -Striking auto workers converged on a Ford assembly plant on the outskirts of Detroit on Friday morning to show their support for the most ambitious labor action in ...