Paul Davidson (economist)

Paul Davidson (born October 23, 1930) is an American macroeconomist who has been one of the leading spokesmen of the American branch of the Post Keynesian school in economics. He is a prolific writer and has actively intervened in important debates on economic policy (natural resources, international monetary system, developing countries' debt) from a position that is very critical of mainstream economics.

Life and work

Davidson did not originally choose economics as a profession. His primary training was in both chemistry and biology, for which he received B.Sc. degrees from Brooklyn College in 1950.^[1] He was a graduate student in biochemistry at the University of Pennsylvania, but switched to economics, receiving his MBA from the City University of New York in 1955, and completing his PhD at the University of Pennsylvania in 1959.

Davidson is Holly Professor of Excellence, Emeritus at the University of Tennessee in Knoxville. He is a Visiting Scholar at the Schwartz Center For Economic Policy Analysis at the New School. Besides the University of Pennsylvania, the University of Tennessee, and the New School, Davidson has taught economics at Rutgers University, Bristol University, and the University of Cambridge. In the early 1960s he worked at Continental Oil Company.^[1]

Davidson and Sidney Weintraub founded the Journal of Post Keynesian Economics in 1978. Davidson continues as editor of that journal. He is also a contributor to the Center for Full Employment and Stability. The CFEPS website (see Other Contributors: Paul Davidson) contains more biographical information about him, as well as a list of his publications, with links to a few.

References

Major publications

• Davidson, P. (1959). "A Clarification of the Ricardian Rent Share". The Canadian Journal of Economics and Political Science. 25 (2): 190–195. doi:10.2307/139062. 
• Davidson, P. (1960). "Increasing Employment, Diminishing Returns, Relative Shares, and Ricardo". The Canadian Journal of Economics and Political Science. 26 (1): 147–149. doi:10.2307/138826. 
• Theories of Aggregate Income Distribution, 1960
• Davidson, P. (1962). "More on the Aggregate Supply Function". The Economic Journal. 72 (286): 452–457. doi:10.2307/2228715. 
• Davidson, P. (1962). "Income and Employment Multipliers, and the Price Level". The American Economic Review. 52 (4): 738–752. doi:10.2307/1808986. 
• Davidson, P. (1963). "Public Policy Problems of the Domestic Crude Oil Industry". The American Economic Review. 53 (1): 85–108. doi:10.2307/1817130. 
• Davidson, P.; Smolensky, E. (1964). "Modigliani on the Interaction of Monetary and Real Phenomena". The Review of Economics and Statistics. 46 (4): 429–431. doi:10.2307/1924053. 
• Aggregate Supply and Demand Analysis, with E. Smolensky, 1964
• Davidson, P. (1965). "Keynes's Finance Motive". Oxford Economic Papers. 17 (1): 47–65. doi:10.2307/2662469. 
• Davidson, P. (1967). "The Importance of the Demand for Finance". Oxford Economic Papers. 19 (2): 245–253. doi:10.2307/2662215. 
• Davidson, P. (1967). "A Keynesian View of Patinkin's Theory of Employment". The Economic Journal. 77 (307): 559–578. doi:10.2307/2228991. 
• "The Valuation of Public Goods," 1968, in Garnsey and Hibbs (eds.), Social Sciences and the Environment
• Davidson, P. (1968). "Money, Portfolio Balance, Capital Accumulation, and Economic Growth". Econometrica. 36 (2): 291–321. doi:10.2307/1907491. 
• Davidson, P. (1968). "The Demand and Supply of Securities and Economic Growth and Its Implications for the Kaldor-Pasinetti Versus Samuelson-Modigliani Controversy". The American Economic Review. 58 (2): 252–269. doi:10.2307/1831814. 
• Davidson, P. (1969). "A Keynesian View of the Relationship Between Accumulation, Money and the Money Wage-Rate". The Economic Journal. 79 (314): 300–323. doi:10.2307/2230170. 
• Davidson, P. (1972). "Money and the Real World". The Economic Journal. 82 (325): 101–115. doi:10.2307/2230209. JSTOR 2230209. 
• Davidson, P. (1972). "A Keynesian View of Friedman's Theoretical Framework for Monetary Analysis". The Journal of Political Economy. 80 (5): 864–882. doi:10.1086/259942. 
• Money and the Real World, 1972
• Davidson, P.; Weintraub, S. (1973). "Money as Cause and Effect". The Economic Journal. 83 (332): 1117–1132. doi:10.2307/2230844. 
• "Market Disequilibrium Adjustments: Marshall Revisited," 1974, Econ Inquiry
• Davidson, P.; Falk, L. H.; Lee, H. (1974). "Oil: Its Time Allocation and Project Independence". Brookings Papers on Economic Activity. 1974 (2): 411–448. doi:10.2307/2534193. 
• "Post-Keynesian Monetary Theory and Inflation", 1977, in S. Weintraub (ed.), Modern Economic Thought
• "A Discussion of Leijonhufvud's Social Consequences of Inflation", 1977, in Harcourt (ed.), Microfoundations of Macroeconomics
• "The Carter Energy Proposal", 1977, Challenge
• "Money and General Equilibrium," 1977, Economie Appliquee
• Davidson, P. (1978). "Why Money Matters: Lessons from a Half-Century of Monetary Theory". Journal of Post Keynesian Economics. 1 (1): 46–70. doi:10.2307/4537459. 
• Davidson, P. (1978). "The United States Internal Revenue Service: Fourteenth Member of OPEC?". Journal of Post Keynesian Economics. 1 (2): 47–58. doi:10.2307/4537469. 
• "Post Keynesian Approach to the Theory of Natural Resources", 1979, Challenge
• "Monetary Policy, Regulation and International Adjustments," with M.A. Miles, 1979, Economies et Societies
• Davidson, P. (1979). "Oil Conservation: Theory vs. Policy". Journal of Post Keynesian Economics. 2 (1): 145–149. doi:10.2307/4537519. 
• "What Is the Energy Crisis?", 1979, Challenge
• "Keynes's Paradigm: A Theoretical Framework for Monetary Analysis", with J.A. Kregel, 1980, in Nell (ed.), Growth, Property and Profits
• Davidson, P. (1980). "The Dual-Faceted Nature of the Keynesian Revolution: Money and Money Wages in Unemployment and Production Flow Prices". Journal of Post Keynesian Economics. 2 (3): 291–307. doi:10.2307/4537535. 
• "Keynes's Theory of Employment, Expectations and Indexing", 1980, Revista de Economia Latinoamericana
• "Post Keynesian Economics: Solving the Crisis in Economic Theory", 1981, in Bell and Kristol (eds.), The Crisis in Economic Theory
• Davidson, P.; Lindholm, R. W. (1981). "Can VAT Resolve the Shortage of Savings (SOS) Distress? [with Rejoinder]". Journal of Post Keynesian Economics. 4 (1): 51–62. doi:10.2307/4537635. 
• "Alfred Marshall is Alive and Well in Post Keynesian Economics", 1981, IHS Journal
• "A Critical Analysis of the Monetarist-Rational Expectations Supply Side (Incentive) Economics Approach to Accumulation During a Period of Inflationary Expectations," 1981, Kredit und Kapital
• International Money and the Real World, 1982
• Davidson, P. (1982). "Rational Expectations: A Fallacious Foundation for Studying Crucial Decision-Making Processes". Journal of Post Keynesian Economics. 5 (2): 182–198. doi:10.2307/4537730. 
• "Monetarism and Reagonomics", 1983, in S. Weintraub and Goodstein (eds.), Reagonomics in the Stagflation Economy
• Davidson, P. (1983). ""Keynes's General Theory: A Different Perspective."". Journal of Economic Literature. 21 (1): 52–56. doi:10.2307/2724747. 
• Davidson, P. (1983). "The Marginal Product Curve is Not the Demand Curve for Labor and Lucas's Labor Supply Function is Not the Supply Curve for Labor in the Real World". Journal of Post Keynesian Economics. 6 (1): 105–117. doi:10.2307/4537796. 
• Davidson, P. (1983). "An Appraisal of Weintraub's Work". Eastern Economic Journal. 9 (4): 291–294. doi:10.2307/40325122. 
• Davidson, P. (1984). "Reviving Keynes's Revolution". Journal of Post Keynesian Economics. 6 (4): 561–575. doi:10.2307/4537848. 
• "The Conventional Wisdom on Deficits Is Wrong", 1984, Challenge
• "Incomes Policy as a Social Institution", 1985, in Maital and Lipnowski (eds.), Macroeconomic Conflict and Social Institutions
• "Policies For Prices And Incomes", 1985, in Barrere (ed.), Keynes Today
• "Financial Markets and Williamson's Theory of Governance: Efficiency vs. Concentration vs. Power", with G.S. Davidson, 1984, Quarterly Review of Economics and Business
• Davidson, P. (1985). "Liquidity and Not Increasing Returns is the Ultimate Source of Unemployment Equilibrium". Journal of Post Keynesian Economics. 7 (3): 373–384. doi:10.2307/4537895. 
• Davidson, P. (1985). "Can Effective Demand and the Movement toward Further Income Equality Be Maintained in the Face of Robotics? An Introduction". Journal of Post Keynesian Economics. 7 (3): 422–425. doi:10.2307/4537900. 
• Davidson, P. (1985). "Sidney Weintraub: An Economist of the Real World". Journal of Post Keynesian Economics. 7 (4): 533–539. doi:10.2307/4537915. 
• "A Post Keynesian View of Theories and Causes of High Real Interest Rates", 1986, Thames Papers in Political Economy
• Davidson, P. (1986). "Finance, Funding, Saving, and Investment". Journal of Post Keynesian Economics. 9 (1): 101–110. doi:10.2307/4537993. 
• Davidson, P. (1986). "The Simple Macroeconomics of a Nonergodic Monetary Economy versus a Share Economy: Is Weitzman's Macroeconomics too Simple?". Journal of Post Keynesian Economics. 9 (2): 212–225. doi:10.2307/4538004. 
• "Financial Markets, Investment, and Employment", 1988, in Matzner et al. (eds.), Barriers to Full Employment
• Davidson, P. (1987). "Sensible Expectations and the Long-Run Non-Neutrality of Money". Journal of Post Keynesian Economics. 10 (1): 146–153. doi:10.2307/4538058. 
• Davidson, P. (1987). "A Modest Set of Proposals for Resolving the International Debt Problem". Journal of Post Keynesian Economics. 10 (2): 323–338. doi:10.2307/4538074. 
• "Weitzman's Share Economy And The Aggregate Supply Function", 1988, in Hamouda and Smithin (eds.), Keynes and Public Policy After Fifty Years
• "Endogenous Money, The Production Process, And Inflation Analysis", 1988, Economie Appliquee
• "A Technical Definition of Uncertainty and the Long Run Non- Neutrality of Money", 1988, Cambridge JE
• Economics for a Civilized Society, with G. Davidson, 1988
• "Keynes and Money" 1989, in Hill (ed.), Keynes, Money, and Monetarism
• "Prices and Income Policy: An Essay in Honor of Sidney Weintraub", 1989, in Barrere (ed.), Money, Credit, and Prices in Keynesian Perspective
• "Patinkin's Interpretation of Keynes and the Keynesian Cross", 1989, HOPE
• Davidson, P. (1989). "Only in America: Neither the Homeless nor the Yachtless Are Economic Problems". Journal of Post Keynesian Economics. 12 (1): 164–166. doi:10.2307/4538179. 
• "The Economics of Ignorance Or Ignorance of Economics?", 1989, Critical Review
• "Shackle and Keynes vs. Rational Expectations Theory on the Role of Time, Liquidity, and Financial Markets" 1990, in S. Frowen (ed.), Unknowledge and Choice in Economics
• "Liquidity Proposals for a New Bretton Woods Plan", 1990, in Barrere, Keynesian Economic Policies
• "On Thirlwall's Law", 1990, Revista de Economia Politica
• Collected Writings of Paul Davidson (2 vols.), 1990–1.
• Controversies in Post Keynesian Economics, 1991
• Davidson, P. (1990). "A Post Keynesian Positive Contribution to "Theory"". Journal of Post Keynesian Economics. 13 (2): 298–303. doi:10.2307/4538242 (inactive 2015-02-26). 
• "Is Probability Theory Relevant For Choice Under Uncertainty?: A Post Keynesian Perspective", 1991, JEP
• "What Kind of International Payments System Would Keynes Have Recommended for the Twenty-First Century?" 1991, in Davidson and Kregel (eds.), Economic Problems of the 1990s
• "Money: Cause or Effect? Exogenous or Endogenous?", 1992, in Nell and Semmler (eds.), Nicholas Kaldor and Mainstream Economics
• "Eichner's Approach to Money and Macroeconomics", 1992, in Milberg (ed.), The Megacorp and Macrodynamics
• Davidson, P. (1992). "Reforming the World's Money". Journal of Post Keynesian Economics. 15 (2): 153–179. doi:10.2307/4538333. 
• Davidson, P. (1993). "The Elephant and the Butterfly: Or Hysteresis and Post Keynesian Economics". Journal of Post Keynesian Economics. 15 (3): 309–322. doi:10.2307/4538348. 
• Davidson, P. (1992). "Would Keynes Be a new Keynesian?". Eastern Economic Journal. 18 (4): 449–463. doi:10.2307/40325476. 
• "Asset Deflation and Financial Fragility" 1993, in Arestis (ed.), Contemporary Issues in Money and Banking
• Can the Free Market Pick Winners? (editor), 1993
• Growth, Employment and Finance: Economic Reality and Economic Theory, (co-edited with J.A. Kregel), 1994
• "The Asimakopulos View of Keynes's General Theory", 1994, in Harcourt and Roncaglia (eds.), Investment and Employment in Theory and Practice
• "Monetary Theory and Policy In A Global Context With A Large International Debt" 1994, in Frowen (ed.), Monetary Theory and Monetary Policy
• Post Keynesian Macroeconomic Theory: a foundation for successful economic policies for the Twenty-first Century, 1994
• Economics For A Civilized Society, with Greg Davidson, 1996.
• "What Are The Essential Characteristics of Post Keynesian Monetary Theory?", 1996, in G. Deleplace and E. J. Nell (eds.), Money in Motion
• "The General Theory in An Open Economy," 1996, in Harcourt and Riach (eds.), A Second Edition of the General Theory
• Davidson, P. (1996). "Reality and Economic Theory". Journal of Post Keynesian Economics. 18 (4): 479–508. doi:10.2307/4538504. 
• Davidson, P. (1997). "Are Grains of Sand in the Wheels of International Finance Sufficient to do the Job when Boulders are Often Required?". The Economic Journal. 107 (442): 671–686. doi:10.1111/1468-0297.00183. 
• Davidson, P. (1998). "Post Keynesian Employment Analysis and the Macroeconomics of OECD Unemployment". The Economic Journal. 108 (448): 817–831. doi:10.1111/1468-0297.00317. 
• "Is a Plumber Or A Financial Architect Needed to End Global International Liquidity Problems?", 2000, World Development
• Financial Markets, Money and the Real World, 2002
• Davidson, P. (2003). "Are Fixed Exchange Rates the Problem and Flexible Exchange Rates the Cure?". Eastern Economic Journal. 29 (2): 259–268. doi:10.2307/40325413. 
• Davidson, P. (2003). "Is "Mathematical Science" an Oxymoron when Used to Describe Economics?". Journal of Post Keynesian Economics. 25 (4): 527–545. doi:10.2307/4538847. 
• Davidson, P. (2003). "Setting the Record Straight on "A History of Post Keynesian Economics"". Journal of Post Keynesian Economics. 26 (2): 245–272. doi:10.2307/4538872. 
• "The Post Keynesian School", Snowden and Vane (eds.) Modern Macroeconomics, 2005
• Davidson, P. (2005). "Responses to Lavoie, King, and Dow on what Post Keynesianism is and who is a Post Keynesian". Journal of Post Keynesian Economics. 27 (3): 393–408. doi:10.2307/4538934. 
• Davidson, P. (2005). "Galbraith and the Post Keynesians". Journal of Post Keynesian Economics. 28 (1): 103–113. doi:10.2307/4538962. 
• "Can, Or Should, A Central Bank Inflation Target?" 2006, JPKE
• "Keynes and Money" in Arestis and Sawyer (eds.) Handbook of Alternative Monetary Economics, 2006
• "Keynes, Post Keynesian Analysis, and the Open Economies of the Twenty-first Century" Arestis, McCombie and Vickerman (eds.) Growth and Economic Development, 2006
• "Are We Making Progress Towards A Civilized Society?", 2007, JPKE
• John Maynard Keynes, 2007
• "How To Solve The U.S. Housing Problem and Avoid A Recession: A Revived HOLC and FTC", Schwartz Center For Economic Policy Analysis: Policy Note, 2008.
• "Securitization, Liquidity, and Market Failure", 2008, Challenge
• "Is The Current Financial Distress Caused By The Sub Prime Mortgage Crisis A Minsky moment? Or Is It The Result of Attempting To Securitize Illiquid Non Commercial Mortgage Loans?", 2008, JPKE
• The Keynes Solution: The Path to Global Economic Prosperity, 2009
• Davidson, Paul (2007). John Maynard Keynes (PDF). Great Thinkers in Economics Series. Basingstoke, England: Palgrave Macmillan. ISBN 9780230229204. 

Girón, Alicia (January 2009). "Review of John Maynard Keynes by Davidson, Paul (2007) in Great Thinkers in Economics Series, Palgrave, Macmillan, England". Ola Financiera (in Spanish). 2: 134–136.  Pdf.

Secondary source

• M. Blaug (ed.) – Who's who in economics (3d edition), 1999
• R. Holt – "Neglected prophets: Paul Davidson: The truest Keynesian?" Eastern Economic Journal, 1998
• Stefan Voss, Book Review: Paul Davidson, Post Keynesian Theory and Policy: A Realistic Analysis of the Market Oriented Capitalist Economy; in:Turkish Economic Review, Vol 3, No 2 (2016), http://www.kspjournals.org/index.php/TER/article/view/876

External links

• Paul Davidson's homepage at the Univ. of Tennessee
• VIdeo interview on WTTW Aug 9, 2011 on the S&P downgrade
• Paul Davidson: Is Mercantilism Doomed to Fail?