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List of Tables, Figures, and Boxes |
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xvii | |
Preface |
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xix | |
Acknowledgments |
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xi | |
Note to Instructors |
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xiii | |
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Philosophical Debates in Economics |
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3 | (12) |
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3 | (1) |
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Paradigms in Economic Theory (or Why Economists Disagree) |
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3 | (7) |
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Blank Slate Theory of Knowledge |
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Paradigmatic Theory of Knowledge |
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Normal Science and Scientific Revolutions |
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10 | (1) |
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Simple Review Questions (Making Sure You Got the Basic Ideas) |
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More Thought-Provoking Discussion Questions |
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11 | (1) |
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Conclusion: Some Implications of a Paradigmatic Theory of Knowledge for Social Science and Economics |
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12 | (1) |
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Centrality of Paradigms to Research Results |
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Distinguishing Between Inter- and Intra-Paradigm Debates |
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Indeterminacy of Paradigm Debates |
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Final Questions for Discussion |
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13 | (1) |
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14 | (1) |
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Thinking Differently: Neoclassical Versus Heterodox Economics Texts, Subtexts and Basic Orientations |
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15 | (11) |
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Introduction and Chapter Overview |
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15 | (1) |
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16 | (1) |
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17 | (1) |
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Methodological Individualism (MI) Versus Holism (H) |
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18 | (3) |
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Methodological Individualism (MI) |
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Holism (H) (or Holist Structuralism [ HS]) |
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Texts and Subtexts in Economics |
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21 | (2) |
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Illustrative Neoclassical Subtexts |
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Illustrative Heterodox Subtexts |
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23 | (1) |
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24 | (2) |
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Competing Assumptions, Methods, and Metaphors |
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26 | (13) |
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26 | (1) |
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26 | (5) |
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Heterodox Objections to Excessive Abstraction: The Fallacy of Misplaced Concreteness |
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Heterodox Critiques of Homo Economicus (``Rational Economic Man'' or REM) |
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Heterodox Objections to Neoclassical Theory's Treatment of Work and the Labor Process |
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Heterodox Perspectives on How Markets Work |
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31 | (4) |
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Telling Other Stories: Heterodox Critiques of Neoclassical Metaphors and Stories |
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35 | (1) |
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Robinson Crusoe and Friday |
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36 | (1) |
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37 | (2) |
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New Beginnings: Heterodox Critiques of the Introductory Chapters in Neoclassical Principles Texts |
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39 | (17) |
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39 | (1) |
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Is Neoclassical Economic Theory a Science? |
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39 | (2) |
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The Positive/Normative Distinction |
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41 | (1) |
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42 | (1) |
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The Limits of Scarcity and Efficiency Discourse |
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42 | (3) |
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45 | (1) |
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The Ceteris Paribus (All Things Equal) Assumption |
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45 | (1) |
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The Circular Flow: Directions |
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46 | (1) |
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46 | (1) |
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Textbook Images and Metaphors |
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47 | (1) |
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Free Markets and Voluntary Exchange |
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Some Alternative Heterodox Images |
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48 | (3) |
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People as Citizens and Family Members as well as Consumers |
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Summary: ``If You Have a Hammer . . .'' |
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51 | (1) |
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51 | (2) |
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53 | (3) |
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Reintroducing Supply and Demand: A Heterodox Micro Foundation for Macroeconomics |
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56 | (12) |
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57 | (1) |
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57 | (6) |
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The Logic of Equilibrium Models |
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The Logic of Disequilibrium Models |
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Integrating Equilibrium and Disequilibrium Dynamics: The Auctioneer and the Casino Metaphors |
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Heterodox Critiques of Textbook Demand and Supply Curves |
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63 | (2) |
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65 | (1) |
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65 | (1) |
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66 | (1) |
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67 | (1) |
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From Micro to Macro Analysis: Heterodox Critiques of the Initial Macro Chapters in Principles Texts |
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68 | (7) |
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68 | (1) |
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Keynes and the History of Macroeconomics |
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68 | (1) |
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68 | (4) |
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Micro Foundations for Macro Theory or Macro Foundations for Micro Theory? |
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Topics and Concerns for Macroeconomics |
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72 | (1) |
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The Confusing World of Aggregate Supply and Aggregate Demand: Two Curves in Search of a Theory |
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72 | (1) |
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73 | (1) |
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73 | (1) |
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74 | (1) |
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74 | (1) |
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Remeasuring Economic Activity: Heterodox Critiques of GDP Accounting |
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75 | (16) |
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75 | (1) |
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GDP: The Textbooks' Yardstick |
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75 | (1) |
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Inadequacies of GDP as a Measure of Economic Well-Being |
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76 | (7) |
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Neglect of Nonmarket Activities |
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Neglect of Positional Competition |
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Neglect of ``Bads'' and Increasing Intermediate Goods Requirements |
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Neglect of Depletion of ``Natural Capital'' and Other Problems with Capital Accounting |
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Neglect of Distributional Issues |
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Neglect of Changes in the Quality of Work Life |
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Neglect of Meta-Externalities |
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Neoclassical Responses to Heterodox Concerns: ``Deja Vu All Over Again'': The ``Note but Ignore'' Motif |
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83 | (1) |
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84 | (1) |
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Novel Difficulties or Topical Disinterest |
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Threshold Effects: Disabling Old Correlations |
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Alternative Indicators of Economic Performance |
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85 | (1) |
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86 | (1) |
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87 | (1) |
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87 | (4) |
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Remeasuring Economic Activity: Labor Market and Inflation Statistics |
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91 | (19) |
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91 | (1) |
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The Costs of Unemployment |
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92 | (7) |
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The Cost of Lost Income to Working Families |
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Psychological and Sociological Impacts of Unemployment |
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Unemployment and Social Inequality |
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Implications of the Costs of Unemployment |
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99 | (2) |
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101 | (4) |
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Conclusion: The ``So What'' Question |
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105 | (1) |
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106 | (1) |
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107 | (3) |
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Reintroducing Aggregate Demand |
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110 | (23) |
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110 | (1) |
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111 | (4) |
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Keynesian Doubts of Full-Employment Guarantees |
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Keynesian Policy Implications |
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Intermission: A Break for Discussion |
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115 | (1) |
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Erosion of Keynesian Theory |
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115 | (1) |
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116 | (1) |
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The Purpose of the Keynesian Cross |
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Textbook and Heterodox Discussions of Consumption |
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116 | (3) |
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Neglect of the Social Dimension of Consumer Demand |
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Isolated or Social Consumers: Alternative Consumption Functions |
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119 | (3) |
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Insufficient Attention to Business Savings |
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Insufficient Attention to Institutional Factors |
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Insufficient Attention to Suboptimal Behaviors |
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Insufficient Attention to Distributional Issues |
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122 | (4) |
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Impact of Uncertainty and Expectations |
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Savings, Consumption, and Investment Relations in a Demand-Constrained Economy |
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Neglect of Institutional Phenomena |
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Case Study: Investment Strategies in the ``New'' and ``Old'' Economies |
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126 | (1) |
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Competing Metaphors and Stories |
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126 | (1) |
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127 | (1) |
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128 | (1) |
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On Paradigms in Macroeconomics |
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On Investment-Led Savings |
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On the Nature of Consumer Behavior |
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129 | (1) |
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130 | (3) |
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Reintroducing Money: Basic Concepts |
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133 | (11) |
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Introduction and Overview |
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133 | (1) |
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The Implications of Uncertainty |
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134 | (3) |
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``Like Hamlet Without the Prince'' |
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Heterodox Focus on Liquidity |
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Reconceptualizing Money Demand and Money Supply |
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Bankruptcy and Disequilibrium Dynamics |
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The ``Monetized'' Nature of a Capitalist Economy |
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137 | (2) |
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(C-M-C') Versus (M-C-C'-M') |
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The Complicated Relationship Between Savings and Investment |
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139 | (1) |
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Institutions and ``Misplaced Concreteness'' |
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139 | (1) |
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140 | (1) |
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141 | (1) |
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142 | (2) |
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Applications of Heterodox Monetary Theory |
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144 | (19) |
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144 | (1) |
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144 | (7) |
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Explaining Financial Crises |
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Sample Heterodox Analyses of Financial Markets |
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151 | (3) |
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Technocratic or Political Policy Making? |
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Functional Role of Unemployment |
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154 | (2) |
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156 | (2) |
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Competing Stories and Metaphors |
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158 | (1) |
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158 | (2) |
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160 | (1) |
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160 | (3) |
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Reintroducing Aggregate Supply and Aggregate Demand |
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163 | (25) |
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Introduction: Two Curves in Search of a Theory |
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163 | (1) |
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Review of Standard Textbook Treatments of AS-AD |
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164 | (3) |
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Derivation of the Aggregate Demand Curve |
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Derivation of the Aggregate Supply Curve |
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Using the AS-AD Framework |
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Overview of Heterodox Critiques of the AS-AD Framework |
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167 | (1) |
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Heterodox Critiques of Textbook AD Curves |
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168 | (2) |
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Graphing Heterodox AD Curves |
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Keynesian and Other Heterodox Critiques of Textbook AS Curves |
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170 | (9) |
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The Implicit Supply Curve of the Keynesian Cross |
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The Implications of the Large Corporation |
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Gaps and Overlaps Between Textbook and Heterodox Theory |
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179 | (1) |
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180 | (1) |
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Need for Government Demand Management During Economic Downturns |
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Need for Government Policy During Economic Expansions |
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181 | (1) |
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182 | (1) |
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182 | (6) |
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Heterodox Alternatives to the AS-AD Framework |
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188 | (15) |
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188 | (1) |
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Circuits of Capital Approach |
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188 | (1) |
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Social Structures of Accumulation (SSA) |
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189 | (6) |
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Consolidation of the Neoliberal SSA |
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Comparing the AS-AD and SSA Frameworks for Analyzing Macroeconomic Events |
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195 | (2) |
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197 | (1) |
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In Their Own Words: Heterodox Critiques of Textbook Treatments of Aggregate |
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Supply and Aggregate Demand |
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197 | (2) |
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On the AS-AD Framework and Theories of Unemployment |
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Heterodox Theories of Pricing and Output Behavior |
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On Institutions and Economics |
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199 | (1) |
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199 | (4) |
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Reintroducing International Economic Issues |
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203 | (27) |
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203 | (1) |
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Textbook Principles of International Economics |
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204 | (1) |
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Overview of Heterodox Critiques |
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205 | (1) |
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Heterodox Critiques: Misplaced Concreteness |
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205 | (4) |
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The Political Economy of Global Trade |
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Heterodox Critiques: Distributional Issues |
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209 | (1) |
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Heterodox Critiques: Dynamic Versus Static Analysis |
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210 | (1) |
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Heterodox Critiques: Uncertainty and Financial Markets |
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211 | (1) |
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Heterodox Critiques: Sluggish Price Adjustments and Insufficient Aggregate Demand |
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212 | (1) |
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Heterodox Critiques: Meta-Externalities |
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213 | (2) |
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Potential Benefits of Localism |
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Threads: Trade and the Environment |
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215 | (4) |
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Reconciling Trade and Environmental |
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Pareto Optimal or Intolerable Exchanges |
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219 | (1) |
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219 | (2) |
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Alternative Images and Competing Metaphors |
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221 | (1) |
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221 | (3) |
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224 | (1) |
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224 | (1) |
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225 | (5) |
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Reintroducing the Macroeconomics of Inequality |
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230 | (40) |
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230 | (1) |
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Measuring Inequality: ``Lies, Damn Lies, and Statistics'' (Benjamin Disraeli) |
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231 | (3) |
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Measures of Income Inequality |
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Measures of Wealth Inequality |
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Poverty: Definition, Measurement, and Significance |
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234 | (2) |
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``Absolute'' Definitions of Poverty: Historical Trends |
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``Relative'' (Non-Subsistence) Definitions of Poverty |
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Racial and Gender Inequalities |
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236 | (2) |
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238 | (1) |
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International Comparisons |
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239 | (1) |
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Measuring Social Mobility |
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239 | (1) |
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240 | (1) |
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The Macroeconomics of Inequality |
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241 | (5) |
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Macro Regimes and Inequality |
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Why Did Inequality Increase from 1973 to 2003? |
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246 | (5) |
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Neoclassical Explanations |
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Policy Responses to Inequality |
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251 | (7) |
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``Steady-As-You-Go'' Policy Recommendations |
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(SS) Macroeconomic Policy Recommendations |
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Heterodox Policy Recommendations |
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258 | (2) |
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Level of Attention to Equity Issues |
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Empathy and Interpersonal Utility Comparisons |
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Challenging Equity Efficiency Trade-offs |
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Inequality and the ``Caring Economy'' |
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|
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Threads: Environmental Issues |
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260 | (1) |
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260 | (2) |
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Holism, Methodological Individualism, and Inequality |
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International Comparisons |
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262 | (1) |
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263 | (1) |
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264 | (6) |
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Reintroducing Macroeconomics and the Environment |
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270 | (24) |
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270 | (1) |
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The Neoclassical Model of Environmental Economics |
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270 | (3) |
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Basic Logic and Assumptions |
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|
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Examples of Neoclassical Environmental Analysis |
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Fundamental Problems with Neoclassical Environmental Economics |
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273 | (4) |
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Limitations of Market Rationality and Market Mechanisms |
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|
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Citizens Versus Consumers |
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Scaling Effects and Qualitative Change |
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|
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Economic Growth and Environmental Quality |
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277 | (6) |
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Neoclassical Inquiry: Is There an Environmental Kuznets Curve? |
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|
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Heterodox Inquiry: Are There Limits to Growth? |
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|
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The Precautionary Principle |
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|
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Sustainability Conditions |
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|
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Equity and Environmental Economics |
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283 | (3) |
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Is Inequality Good, Bad, or Irrelevant for the Environment? |
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|
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Is There a Trade-Off Between Protecting Jobs and the Poor and Protecting the Environment? |
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|
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Ethics, Economic Methodology, and the Environment |
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``Environmental Justice'' Issues |
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|
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``Social Logics'' and the Environment |
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286 | (4) |
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Social Systems and the Environment |
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|
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Is Capitalism Sustainable? |
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Conclusion: Point and Counterpoint |
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290 | (1) |
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290 | (1) |
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291 | (1) |
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291 | (3) |
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Reintroducing Current Policy Debates in Macroeconomics |
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294 | (18) |
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294 | (1) |
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Differences Among Heterodox Paradigms |
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Textbook Portrayals of Policy Debates: GE and Keynesian Positions |
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295 | (5) |
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Financial Sector Regulation |
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300 | (3) |
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Financial Sector Regulation |
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Heterodox Expansion of Policy Agendas |
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303 | (1) |
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|
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Structuralist Macroeconomics: Macro Regimes and Macro Policy |
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304 | (1) |
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Threads: Distributional Issues |
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304 | (2) |
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306 | (1) |
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|
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Gendered Economic Experience |
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|
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All GDP Is Not Created Equal |
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Threads: Environmental Issues |
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307 | (1) |
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Equity and the Environment |
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Trade and the Environment |
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308 | (1) |
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308 | (1) |
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309 | (1) |
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310 | (2) |
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Conclusion: Rethinking Macroeconomics---Heterodox Versus Textbook Economics |
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|
312 | (13) |
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312 | (1) |
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312 | (1) |
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313 | (1) |
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Textbook Responses to Heterodox Critiques |
|
|
314 | (2) |
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Identification of Neoclassical Economics with Science, Mathematics, and Empirical Verification |
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|
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Rejection of Heterodox Critiques as Attacks on a Straw Man |
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|
|
The Long-Run Anchor of General Equilibrium |
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|
|
The ``Relative Optimality'' of Market Outcomes |
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316 | (2) |
|
Paradigmatic Nature of Knowledge |
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|
|
Fair Target or Straw Man? |
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|
|
Long-Run Anchors or Floating Hypotheticals? |
|
|
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318 | (1) |
|
Beyond Laissez-Faire ``Lite'' |
|
|
|
Building on Common Ground |
|
|
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319 | (1) |
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319 | (4) |
|
General Sources of Information |
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|
|
Introductory Macroeconomics and Microeconomics Textbooks |
|
|
|
Introduction to Political Economy |
|
|
|
Introduction to Radical Economics |
|
|
|
Introduction to Institutionalist Economics |
|
|
|
Introduction to Feminist Economics |
|
|
|
Introduction to Post Keynesian Economics |
|
|
|
Introduction to Marxist Economics |
|
|
|
Introduction to Ecological Economics |
|
|
|
Introduction to Social Economics |
|
|
|
More Advanced Discussions of Heterodox Critiques of and Alternatives to Neoclassical Theory |
|
|
|
|
323 | (2) |
Glossary |
|
325 | (16) |
Works Cited |
|
341 | (14) |
Index |
|
355 | (14) |
About the Author |
|
369 | |