ECONOMIC THEORY AND REALITY: Selected Essays on their Disparities and Reconciliation(Economists of the Twentieth Century series)

Economic Theory and Reality presents Tibor Scitovsky's latest thinking on the relationship between economic theory and economic reality. This volume features discussion of many of the important theoretical contributions made to economics over the last 40 years including the Keynesian revolution and the ideas of Lerner, Steindl, Hirsch, Frank and many others who extended and enhanced the economist's toolbox.Professor Scitovsky's attempt to make economic theory more realistic and thereby more useful is the subject of the first part of the volume which includes his work on the necessity of asymmetric markets, some market power and righteous behaviour as conditions of a progressive and properly functioning market economy. The second major theme is the shortcomings of the real-world economy and, in particular, its failure to maintain macroequilibrium, price stability and full employment. This part includes examinations of inflexible wages and prices, excessive claims, positional goods, and the impact of second-hand markets on the macroeconomy. Economic Theory and Reality improves access to Professor Scitovsky's most important recent work, much of which was originally published either in foreign languages or outside the mainstream literature. As well as improving our understanding of his approach to economics and the contributions which he has made to scholarship, this book addresses key questions about the relevance of economic theory and its future direction.

Table of Contents:
The benefits of asymmetric markets - 1990; the debate on socialist economic planning in today's perspective - 1993; Lerner's contribution to economics - 1984; the demand-side economics of inflation - 1986; moral sentiments and welfare of nations - 1991; how our economy stands up to scrutiny - 1990; growth in the affluent society - 1987; towards a theory of second-hand markets - 1994; the political economy of Josef Steindl - 1993; economic development in Taiwan and South Korea - 1965-81 - 1985; why the US saving rate is low - a conflict between the national accountant's and the individual saver's perceptions - 1986; the meaning, nature and sources of value in economics - 1993; what ails the United States of America - 1994; hindsight economics - 1991.

About the Author :
The late Tibor Scitovsky, formerly Emeritus Professor of Economics, Stanford University, US, Professor Emeritus, London School of Economics, UK and Professor Emeritus University of California, Santa Cruz, US

Review :
'It is a book that is well worth having on the shelf. Economic theorists (macro and mirco), applied economists and welfare economists, and even economic consultants, have all much to gain from reading this book and returning to it at regular intervals. It will remind them all of some fundamental truths and confusions that the economics profession has to deal with.' 'His ability to remain original, thought-provoking and succinct, and to maintain his curiosity for so long, must be the envy of us all.’