Post Keynesian Econometrics,
    Microeconomics and the Theory of the Firm
                 THEPOST KEYNESIAN ECONOMICS
                      STUDY GROUP
        Post Keynesian Econometrics, Microeconomics and the Theory of the Firm and
        Keynes, Uncertainty and the Global Economy are the outcome of a conference held
        at the University of Leeds in 1996 under the auspices of the Post Keynesian
        Economics Study Group. They are the fourth and fifth in the series published by
        Edward Elgar for the Study Group.
         The essays in these volumes bear witness to the vitality and importance of Post
        Keynesian Economics in understanding the workings of the economy, both at the
        macroeconomic and the microeconomic level. Not only do these chapters demon-
        strate important shortcomings in the orthodox approach,but they also set out some
        challenging alternative approaches that promise to lead to a greater understanding
        of the operation of the market mechanism. The papers make important contribu-
        tions to issues ranging from the philosophical and methodological foundations of
        economics to policy and performance.
         The Post Keynesian Study Group was established in 1988 with a grant from the
        Economic and Social Research Council and has flourished ever since. At present
        (2002), there are four meetings a year hosted by a number of ‘old’ and ‘new’ uni-
        versities throughout Great Britain. These are afternoon sessions at which three or
        four papers are presented and provide a welcome opportunity for those working in
        the field to meet and discuss ideas, some of which are more or less complete, others
        of which are at a more early stage of preparation. Larger conferences, such as the
        one from which these two volumes are derived, are also held from time to time,
        including a conference specifically for postgraduates. There are presently over five
        hundred members who receive the Post Keynesian Study Group electronic newslet-
        ter and details of seminars. The Study Group has established a number of interna-
        tional links.
         As the present convenor of the Post Keynesian Study Group, I should like to
        thank Sheila Dow and John Hillard for the not inconsiderable time and effort they
        have spent in editing the proceedings and making these important papers available
        to a wider audience.
                                     John McCombie
                             Downing College, Cambridge, UK
        Recent Developments in Post Keynesian Economics
        Edited by Philip Arestis and Victoria Chick
        Keynes, Knowledge and Uncertainty
        Edited by Sheila Dow and John Hillard
        Finance, Development and Structural Change
        Edited by Philip Arestis and Victoria Chick
        Post Keynesian Econometrics, Microeconomics and the Theory of the Firm
        Edited by Sheila Dow and John Hillard
        Keynes, Uncertainty and the Global Economy
        Edited by Sheila Dow and John Hillard
        Post Keynesian
        Econometrics,
        Microeconomics and
        the Theory of the Firm
        Beyond Keynes, Volume One
        Edited by
        Sheila C. Dow
        Professor of Economics, University of Stirling, UK
        and
        John Hillard
        Director of Taught Postgraduate Programmes, Leeds
        University Business School, UK
        IN ASSOCIATION WITH THE POST KEYNESIAN ECONOMICS
        STUDY GROUP
        Edward Elgar
        Cheltenham, UK • Northampton, MA,USA
          © Sheila Dow and John Hillard 2002
          © 
          All rights reserved. No part of this publication may be reproduced, stored in
          a retrieval system or transmitted in any form or by any means, electronic,
          mechanical or photocopying, recording, or otherwise without the prior
          permission of the publisher.
          Published by
          Edward Elgar Publishing Limited
          Glensanda House
          Montpellier Parade
          Cheltenham
          Glos GL50 1UA
          UK
          Edward Elgar Publishing, Inc.
          136 West Street
          Suite 202
          Northampton
          Massachusetts 01060
          USA
          A catalogue record for this book
          is available from the British Library
          ISBN1 85898 584 6
          Printed and bound in Great Britain by Biddles Ltd, www.biddles.co.uk