Macroeconomics, Trade, and Social Welfare

Michihiro Ohyama

korr 2016 · Advances in Japanese Business and Economics Libri 14 · Springer

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This book develops new, original methods of welfare comparison and comparative dynamics between distinct and discretely positioned (rather than continuously related) socioeconomic situations. These methods are not only realistic but also extremely relevant to serious economic problems. Using them, the book sheds illuminating new light on the theoretical analysis of Keynesian economics and other important issues of political economy. For instance, it shows that the principle of effective demand applies exactly as Keynes put it to the unemployment equilibrium in the short run. It also shows that the equilibrium may change along the expansion path as the government chooses to vary its expenditure to maximize national welfare. The same methods are effectively employed theoretically to investigate modern trade policy issues such as gains from trade, the theory of tariffs, free trade agreements, and the role of the WTO. Those methods are also used to study the welfare and efficiency of various socioeconomic situations.

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Michihiro Ohyama is a professor emeritus of Keio University, Tokyo, Japan. He is the former president of the Japanese Economic Association and the Japan Society of International Economics. His major publications include “On the Stability of Generalized Metzlerian Systems,” Review of Economic Studies, Vol. 39 (1972); “Trade and Welfare in General Equilibrium,” Keio Economic Studies, Vol. 9 (1972); and “Market, Trade and General Equilibrium,” Japanese Economic Review, Vol. 50 (1999).

Professor Ohyama conducted research at the University of New South Wales, Tel Aviv University, and the University of Minnesota. His research has ranged from general equilibrium theory to welfare economics, macroeconomics, and international economics. References to his works are found in Keio Economic Studies 42(1–2), 2005, a special issue in his honor.

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