Monday, June 02, 2014

Whither Piketty?

It seems to me that Piketty's work may peter out in a morass of neoclassical reviews. The reason may as Ackerman points "At the heart of the neoclassical apparatus lie the twin concepts of marginal productivity and the aggregate production function (more on these below), and as Thomas Palley has written, when it comes to these totems, “you are either in or out.” " A review of Felipe and McCombie book on aggregate production function says, "‘This is an extremely important and long-awaited book. The authors provide a cogent guide to all that is wrong with the theory and empirical applications of the discredited notion of an aggregate production function. Their critique has devastating implications for orthodox macroeconomics.’" This seems to be where the problems are which are not mentioned in the reviews by conventional and powerful economists like Krugman and Sumners.
P.S. There is a discussion of Ackerman review in the latter comments of the CT post Political economy is political.

No comments: