Publications [#289129] of William A. Darity

Journal Articles

1. Darity, WA; Marrero, WI, Distribution, effective demand, and the orthodox macromodel, Journal of Macroeconomics, vol. 3 no. 4 (1981), pp. 455-487, Elsevier BV, ISSN 0164-0704 [doi]
   (last updated on 2026/01/16)

   Abstract:
   The ordinary IS-LM framework is revised to incorporate macro-distributional considerations. This permits us to cast a new light on Keynes' theoretical refutation of the usefulness of cutting money wages in the midst of a depression in a comparative statics context. We demonstrate that a generalized cut in money wages under conditions of complete price flexibility and perfect competition (marginal product factor pricing) can lower the volume of employment. This version of the orthodox macromodel also provides a potential handle on such seemingly elusive concepts as Keynes' notions of full employment and under-employment equilibrium. © 1982.