Human Agency and Material Welfare: Revisions in Microeconomics and their Implications for Public Policy (Hardback)Morris Altman (author)
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In this book, the author offers a more inclusive theoretical framework and a more reasonable modeling of the economic agent. This new approach is built upon conventional neoclassical theory while incorporating the most recent research in behavioral economics. The case is made that individuals have some choice over the quantity and quality of effort which they can supply in the process of production. Even under the constraints of severe product market competition and the assumption of `utility maximizing' individuals, effort need not be maximized, especially in firms characterized by antagonistic management-labor relations. This is especially true when relatively inefficient firms can remain competitive by keeping wages relatively low - low wages serve to protect such firms from more efficient firms. Alternatively, relatively high wage firms can remain competitive only if they become more productive. Under these assumptions, higher wages and factors contributing to higher wages can advance the performance of an economy while lower wages can have the opposite effect and cultural and institutional variables, by themselves, can affect the long run productivity and even the long run competitiveness of firms and economies.
In summary, this book calls for a revised approach to the study of economics from a behavioral and socio-economic perspective, with significant consequences for public policy.
Number of pages: 133
Weight: 870 g
Dimensions: 235 x 155 x 9 mm
Edition: 1996 ed.
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