Publisher's Synopsis
Traditional economic theory identifies two primary factors provided by the household: labour (L) and saving (S). In this innovative new study, James A. Yunker proposes an ELS model that adds a third primary factor: capital management effort (E), defined as any and all active behaviour (such as corporate supervision) that increases return on the household's financial capital. Arguing that capital management effort is no less tangible and measurable than labour, Yunker applies the ELS model to demonstrate the critical importance of this concept to such controversial issues as the economic consequences of capital wealth inequality and the potential performance of market socialist economies. This book will be valuable to economic theoreticians and policy analysts with an interest in any of the following topics: theory of the household, supply of labour and saving, computable general equilibrium models, wealth and income distribution, economic policy analysis, entrepreneurship, optimal taxation, and/or market socialism.
