1st Edition

The Two-Sector Model of General Equilibrium

  • Available for pre-order. Item will ship after July 30, 2021
ISBN 9781032050034
July 30, 2021 Forthcoming by Routledge
110 Pages

USD $95.00

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Book Description

Originally published in 1971, this book presents in a lucid form the basic model of distribution in a two-sector general equilibrium system. While this model has been used by many economists, this was the first synoptic exposition of it to become readily available to students. The first part develops the two-sector model and its properties, using the geometrical tools of international trade theory. The second applies the model to some standard problems in the theory of income distribution, including the economics of redistributive taxes and subsidies, of trade union organization, and of minimum wage laws. The third part converts the model into a growth model and develops the conditions for convergence on a steady-state growth path and for the maximization of consumption per head at all points of time.

Table of Contents

1. The Two-Sector Model of Production 2. Applications of the Model 3. A Two-Sector Model of Economic Growth. Appendices: A: Mathematical Notes on the One-Sector Model B: A Comment on the General Equilibrium Analysis of Excise Taxes C: A Geometrical Note on General Equilibrium with Public Goods.

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Harry G. Johnson was Professor of Economics at the University of Chicago.