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How Imperfect Competition Undermines the Marginal Productivity Theory of Distribution?
The theory of distribution occupies an important place in understanding how the diffrent factor endownments is determined. This concept evolved from classical economists to the neo-classical and liberal. However, it is important to note that this concept of marginal productivity theory is generally associated with the neo-classical theory. Furthermore, it basically focuses on how wage…
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The Work-Leisure Trade-Off and Labor Market Equilibrium : Consequesnces to Full Employment and Price Stability
The human desire for both a comfortable living and a fulfilling life beyond work creates a fundamental tension in every economy. This tension arises from the work-leisure trade-off, where individuals must decide how much time to dedicate to earning income through work and how much time to devote to leisure activities for personal well-being. This…
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Why Oligopoly Theory’s Understanding important in Today’s Business Landscape?
Why Oligopoly Theory’s Understanding important in Today’s Business Landscape? In today’s modern economic sytsem business models and orientation changing and expanding very rapidly. Today, all businesses in worldwide adopting Artificial Intelligence (AI) technologies to expand output and maximise profits. Therefore, analysis of oligopoly and its core understanding is crucial. Ologopoly is the type market structure…
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Can a Divided Market Be Equitiable and Fair? Price Discrimination, Efficiency, and Equity in Monopolistic Competition?
The concpet of price discrimination is possible only in the case of imperfect competition more specifically it depends upon the degree of imperfection in the market. For example, pure monopoly is most imperfect form of market structure where perfect competition has no imperfection at all and hence it is cosidered as the most idealstic form…
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Artificial Intelligence and the Economic Progress: Growth Driver or Disruption?”
How AI Can Unlock New Levels of Efficiency and Productivity The world has been witnessing tremendous shift after the launch of ChatGPT in the year 2022 by OpenAI. Although chat bots and AI are not new technology for humans it is widely used in diffrent sectors by many firms and businesses. However, the distingushing feature…
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Understanding the Bretton Woods System: Fixed Exchange Rates and the formulation of IMF
Understanding the Bretton Woods System: Fixed Exchange Rates and the formulation of IMF The aftermath of World War II demanded a new international economic order. The chaos of the Great Depression, fueled by competitive currency devaluations and trade barriers, was fresh in everyone’s minds. This article delves into the Bretton Woods System, a landmark agreement established…
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Money Markets: A Tool for Inclusive Growth? Exploring the Link Between Stabilization and Equity
Money Markets: A Tool for Inclusive Growth? Exploring the Link Between Stabilization and Equity The economic stablisation is the policy of government of any country to control certain variables such as controling inflation, promoting inclusive economic growth and development on the principle of equity. And for that efficient money market is necessary condition and hence diffrent…
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How Crony Capitalism is the Biggest Enemy of Equality and Economic Efficiency?
How Crony Capitalism is the Biggest Enemy of Equality and Economic Efficiency? The dream of every individual in the society and a level playing field, where hard work and talent are the keys to success, is a cornerstone of a healthy economy. However, this ideal is often hampered by the insidious forces of crony capitalism.…
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Rising Rates, Fragile Markets: The Next Big Blowup for the Financial System?
Rising Rates, Fragile Markets: The Next Big Blowup for the Financial System? For over a decade, historically low interest rates have fueled a seemingly endless boom in financial markets. Asset prices have soared, from stocks and bonds to real estate and cryptocurrencies. This era of easy money, however, may be nearing its end. Central banks…
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Declining Returns and the Limits of Partial Equilibrium: Piero Sraffa Perspective
The economic theory of perfect competition has long been a cornerstone of analysis in partial equilibrium frameworks. This approach isolates a single market or good, assuming perfect information, price-taking behavior by firms, and constant returns to scale. However, within this framework, a fundamental tension arises when considering the concept of declining returns. This article explores…
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Pratik Ghansham Salvi Assistant Professor of Economics | Banking & Finance | IMF Finance & Development Contributor 