Economic Growth and the High Wage Economy

Notes

2 Introducing x-efficiency theory, rational inefficiency, and the political economy of the Golden Rule

1 Considerable attention has been given to work that is in many ways derivative of the contributions of Daniel Kahneman and Amos Tversky. See, for example, Kahneman and Tversky (1979) and Tversky and Kahneman (1981). On production there is the pioneering work of Harvey Leibenstein (1957, 1966, 1979, 1987) and Richard Cyert and James March (1963) and, more recently, of George Akerlof (1982), Akerlof and Janet Yellen (1986, 1990), Herbert Simon (1991), and Joseph Stiglitz (1987). See also Altman (1992, 1996, 2001f, and 2003c).

2 See Simon 1991 on some important insights on the discretion afforded to economic agents, at all levels of employment, ...