Please note that this is strictly an unfinished working draft and the entire project is definitely a work very much in progress. The reader will find whole sections unfinished with lists of relevant literature only and as such is implored to please accept the author's apologies for the unfinished nature of this initial draft. (As such do not quote without permission). grant which made the resea...

This paper presents a quantitative model of economic transitions. We explicitly model resource misallocation and financial frictions to explain observed transitional dynamics that are not consistent with the standard neoclassical growth theory. When calibrated to empirical evidence on resource misallocation and financial frictions in less developed countries, our model economy converges slowly ...

Arthur Lewis’ seminal 1954 paper and its emphasis on dualism appeared at a time when neither the work of Keynes or Harrod-Domar nor the later neoclassical production function of Solow seemed relevant for developing countries. As a consequence, his model, rooted in the classical tradition, plus its many extensions, generated an extensive literature at the center of development theory. The approa...

Macroeconomists—especially those studying monetary policy—often view the business cycle as a transitory departure from the smooth evolution of a neoclassical growth model. Important ideas contributed by Friedman, Lucas, and the developers of the sticky-price macro model generate this type of aggregate behavior. But the realbusiness cycle model shows that the neoclassical model implies anything ...

The modern Theory of the Firm uses the concept of rent and makes implicit assumptions about equilibrium. An Austrian (Market Process) Theory of the Firm should have something to say about each of these. Two strategic perspectives are analyzed, the neoclassical microeconomic perspective (using the Ricardo-Marshall approach to rent) and the Market Process perspective (using the Fetter approach to...