Clower’s Dual-Decision Hypothesis is economics
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Keywords

Keynes
Clower
Keynesian
Disequilibrium
Dual decision hypothesis
Consumption
Martingale.

How to Cite

WU, C. K. (2018). Clower’s Dual-Decision Hypothesis is economics. Turkish Economic Review, 5(1), 83–88. https://doi.org/10.1453/ter.v5i1.1611

Abstract

Abstract. Though Wu (2017) has shown Clower’s Dual Decision Hypothesis leading to Keynes’ change in saving (and disequilibrium) conclusion, it is important to compare Clower’s budget constraint approach with other models, including those found in Hall’s consumption theorem and similar approach. In Clower, by assuming that, consumers may not satisfy the budget constraint, one cannot automatically assume Hall’s consumption theorem to hold.  And, by showing how households need to optimize contingent on the satisfaction of their budget constraint, Clower was, in effect, creating a feedback mechanism.

Keywords. Keynes, Clower, Keynesian, Disequilibrium, Dual Decision Hypothesis, Consumption, Martingale, Saving, Growth, Income, Trade, Feedback.

JEL. A10, B2,B22, C20, E20, E60, F00, J00, N10.
https://doi.org/10.1453/ter.v5i1.1611
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References

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Wu, C.K. (2017). Economics and how Obama could have lost the 2016 election too, Journal of Social and Administrative Sciences, 4(3), 283-288.

Wu, C.K. (2017). Does Clower’s Dual-Decision Hypothesis lead to the change in saving conclusion in Keynes’s General Theory?, Journal of Economics Library, 4(4), 552-560.

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