Subject: Trade cycle, imperfect competition, law of diminishing elasticity of demand, Harrod.
jel: jel:B22 | jel:E32
In The Trade Cycle, Roy Harrod [1936a] propounded the Law of Diminishing Elasticity of Demand. The present paper tries to clarify the precise role Harrod assigned to this law in his The Trade Cycle Theory. We discuss the micro and macro foundations of the Law of Diminis... View more