IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v1y1973i2p67-83.html
   My bibliography  Save this article

Targets, Tradeoffs, and Economic Policy: A Generalized Phillips Curve

Author

Listed:
  • Shl Omo Maital

    (Department of Economics Tel-Aviv University)

Abstract

Frank Bechling recently wrote that “the concentration on the trade-off between unemployment and inflation and the neglect of trade-offs between unemployment and other variables (balance of payments, economic growth, structural change, and income distribution) may lead to a suboptimal choice between inflation and unemployment.†Starting from this proposition, this paper uses a simple yet believable model to construct simulated short-run transformation curves for major economic objectives. One of these curves is the familiar Phillips curve relation between inflation and unemployment. Proper design of policy demands knowledge of subjective preferences, as well as objective tradeoffs, among economic goals. A tentative empirical method for investigating preferences is set out, along with some initial findings.

Suggested Citation

  • Shl Omo Maital, 1973. "Targets, Tradeoffs, and Economic Policy: A Generalized Phillips Curve," Public Finance Review, , vol. 1(2), pages 67-83, April.
    • Handle: RePEc:sae:pubfin:v:1:y:1973:i:2:p:67-83
    DOI: 10.1177/109114217300100206
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/109114217300100206
    Download Restriction: no
    File URL: https://libkey.io/10.1177/109114217300100206?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Nicholas Kaldor, 1955. "Alternative Theories of Distribution," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 23(2), pages 83-100.
    2. Maital, Shlomo, 1972. "Inflation, Taxation and Equity," Economic Journal, Royal Economic Society, vol. 82(325), pages 158-169, March.
    3. K. R. MacCrimmon & M. Toda, 1969. "The Experimental Determination of Indifference Curves," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 36(4), pages 433-451.
    4. Robert M. Solow & Joseph E. Stiglitz, 1968. "Output, Employment, and Wages in the Short Run," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 82(4), pages 537-560.
    5. Paul A. Samuelson, 1956. "Social Indifference Curves," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 1-22.
    6. Frank Brechling, 1968. "The Trade-Off between Inflation and Unemployment," Journal of Political Economy, University of Chicago Press, vol. 76(4), pages 712-712.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shlomo Maital, 1973. "Targets, Tradeoffs, and Economic Policy: a Generalized Phillips Curve," Public Finance Review, , vol. 1(1), pages 67-83, January.
    2. Dosi, G. & Pereira, M.C. & Roventini, A. & Virgillito, M.E., 2017. "When more flexibility yields more fragility: The microfoundations of Keynesian aggregate unemployment," Journal of Economic Dynamics and Control, Elsevier, vol. 81(C), pages 162-186.
    3. Joseph E Stiglitz & Martin M Guzman, 2021. "The pandemic economic crisis, precautionary behavior, and mobility constraints: an application of the dynamic disequilibrium model with randomness† [A new view of technological change]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(2), pages 467-497.
    4. Marco Guerrazzi, 2011. "Search And Stochastic Dynamics In The Old Keynesian Economics: A Rationale For The Shimer Puzzle," Metroeconomica, Wiley Blackwell, vol. 62(4), pages 561-586, November.
    5. Teupe, Sebastian, 2020. "Keynes, Inflation, and the Public Debt: "How to Pay for the War" as a Policy Prescription for Financial Repression?," Working Papers 16, German Research Foundation's Priority Programme 1859 "Experience and Expectation. Historical Foundations of Economic Behaviour", Humboldt University Berlin.
    6. Jennifer Roberts & Karl Taylor, 2017. "Intra-household commuting choices and local labour markets," Oxford Economic Papers, Oxford University Press, vol. 69(3), pages 734-757.
    7. Shinhye Chang & Rangan Gupta & Stephen M. Miller, 2018. "Causality Between Per Capita Real GDP and Income Inequality in the U.S.: Evidence from a Wavelet Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 135(1), pages 269-289, January.
    8. Goulven Rubin, 2014. "Disequilibrium economics: some comments about its nature, origins and fate. A review essay of "Transforming Modern Macroeconomics, The Relationship of Micro and Macroeconomics in Historical Persp," Working Papers halshs-01091765, HAL.
    9. Botte, Florian & Dallery, Thomas, 2019. "Analyse systématique du modèle de Bhaduri et Marglin à prix flexibles : « Ça dépend de la valeur des paramètres » [Systematic analysis of the Bhaduri-Marglin Model with flexible prices: « It depend," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 26.
    10. Chavas, Jean-Paul & Smith, Lisa C., 1999. "Supply response of West African agricultural households," FCND discussion papers 69, International Food Policy Research Institute (IFPRI).
    11. repec:ags:ucdegw:232849 is not listed on IDEAS
    12. Juan Carlos De Pablo, 2001. "Ideas, intereses y valores," CEMA Working Papers: Serie Documentos de Trabajo. 196, Universidad del CEMA.
    13. John S. Chipman, 2010. "The Utility-Possibility Frontier," Chapters, in: Mark Blaug & Peter Lloyd (ed.), Famous Figures and Diagrams in Economics, chapter 34, Edward Elgar Publishing.
    14. LaFave, Daniel & Thomas, Duncan, 2017. "Extended families and child well-being," Journal of Development Economics, Elsevier, vol. 126(C), pages 52-65.
    15. Eric Kemp‐Benedict, 2020. "Convergence of actual, warranted, and natural growth rates in a Kaleckian–Harrodian‐classical model," Metroeconomica, Wiley Blackwell, vol. 71(4), pages 851-881, November.
    16. Corrado Di Guilmi & Laura Carvalho, 2015. "The dynamics of leverage in a Minskyan model with heterogenous firms," Working Paper Series 28, Economics Discipline Group, UTS Business School, University of Technology, Sydney.
    17. Jara-Díaz, Sergio & Rosales-Salas, Jorge, 2017. "Beyond transport time: A review of time use modeling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 209-230.
    18. Mauro Mastrogiacomo & Nicole M. Bosch & Miriam D. A. C. Gielen & Egbert L. W. Jongen, 2017. "Heterogeneity in Labour Supply Responses: Evidence from a Major Tax Reform," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(5), pages 769-796, October.
    19. Helpman, Elhanan & Razin, Assaf, 1979. "A Theory of International Trade Under Uncertainty," Elsevier Monographs, Elsevier, edition 1, number 9780123396501 edited by Shell, Karl.
    20. Cathie Laroche Dupraz & Carole Ropars Collet, 2010. "Characterizing demand for domestic versus imported chicken in developing countries: the case of Haiti and Cameroon," Working Papers SMART 10-03, INRAE UMR SMART.
    21. Alois Guger, 2012. "Einkommensverteilung als Krisenursache," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 38(2), pages 345-356.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:1:y:1973:i:2:p:67-83. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.