Economic Theory, Welfare, and the State looks at how economic theory can be used to investigate and analyse the operations of market economies and to provide the basis for improvements in government policy-making. The collection begins with two chapters on the history of economic thought, followed by an exploration of possible areas of conflict between the interests of groups and individuals, and an insightful blend of economic history and economic theory that sheds light on the Canadian government's policy of settling the Prairies by providing land grants. Also included are a critical analysis of rational expectations models and their use in econometrics, an examination of why money should be treated as a public good, and two contributions on international trade theory. Two chapters deal with the problem of maintaining satisfactory levels of employment and three chapters examine different aspects of public pensions.
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