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This paper outlines a steady state multi-modal equilibrium transportation model which contains elastic demands and deterministic route-choices. The model may readily be extended to include some stochastic route-choice or mode choice. Capacity constraints and queueing delays are permitted; and signal green-times and prices are explicitly included. The paper shows that, under natural linearity and monotonicity conditions, for fixed control parameters the set of equilibria is the intersection of convex sets. Using this result the paper outlines a method of designing appropriate values for these control parameters; taking account of travellers' choices by supposing that the network is in equilibrium. The method may be applied to non-linear monotone problems by linearising about a current point. An outline justification of the method is given; a rigorous proof of convergence is as yet missing. Thus the method must now be regarded as a heuristic.

The present essay re-examines the scope of Sraffa’s critique of Marshall’s supply curves that the former developed in his 1925 and 1926 articles showing that neoclassical supply curves derived from non-proportional returns are not robust both in the short and in the long run. After examining what a short-run and a long-run equilibrium means both for the original Sraffa’s articles and for Marshall’s pioneer contribution, the chapter discusses the common procedure in conventional economics to introduce the limitations to the growth of the firm. The argument of the chapter will be based on the 1920s articles as well as on the ‘Lectures on Advanced Theory of Value’ delivered in 1928–1931 by Sraffa at Cambridge University, now publicly available online by the Wren library, Trinity College, Cambridge. For short-run analysis, it must be assumed that the number of firms is fixed. This assumption entails serious problems with regards to the notions of competition and competitive behaviour. For long-run analysis, the sources of increasing costs are problems of management and control. However, this idea is untenable both on logical and empirical grounds. We argue that contemporary mainstream microeconomic treatment of costs and supply in the context of perfect competition still presents several problems. These problems, rather than being superficial, lie at the root of the supply and demand approach of value and distribution.

In the 2010 volume of Research in Political Economy, Alan Freeman put forth the intriguing and original hypothesis that “capitalism's inner laws express themselves in … different ways during booms and during crises” (Freeman, 2010, p. 217). When the business cycle is in an upswing, Freeman argues, the tensions and contradictions that will eventually interrupt the process of capital accumulation are camouflaged by the commodity form, and so appear as natural laws of motion. With the onset of a crisis, however, these tensions erupt into overt class conflict and so become transparent. The open political struggle represents an opportunity for transformative progressive action. While Freeman's development of this hypothesis is in many respects illuminating, his analysis is marred by a gratuitous methodological argument that has little bearing on what he wants to say about crises. His remarks on method would be merely distracting if they were accurate. But they are in fact misleading and therefore stand in the way of productive discussion of the essay's many useful observations.

Gary Mongiovi accurately cites my thesis, presented in Freeman (2010a) (henceforth referred to as Positivist Marxism and abbreviated to PM), that “capitalism's inner laws express themselves in … different ways during booms and during crises” and that “When the business cycle is in an upswing … the tensions and contradictions that will eventually interrupt the process of capital accumulation are camouflaged by the commodity form, and so appear as natural laws of motion.” He also expresses general agreement with this thesis, but complains that the way I present it is “marred by a gratuitous methodological argument” which is “misleading and therefore stand[s] in the way of productive discussion.” The methodological argument in question is that no theory based on the method of static equilibrium can provide an explanation of endogenous capitalist crisis; this is the main issue I address in this response. PM applies this argument in order to examine a theoretical current that dominates Western, academic, Marxism. This current interprets Marx's theory as a variant of general equilibrium. In this response I refer to it as simultaneist Marxism (SM).

In this article we design an econometric test for monotone comparative statics (MCS) often found in models with multiple equilibria. Our test exploits the observable implications of the MCS prediction: that the extreme (high and low) conditiona l quantiles of the dependent variable increase monotonically with the explanatory variable. The main contribution of the article is to derive a likelihood-ratio test, which to the best of our knowledge is the first econometric test of MCS proposed in the literature. The test is an asymptotic “chi-bar squared” test for order restrictions on intermediate conditional quantiles. The key features of our approach are: (1) we do not need to estimate the underlying nonparametric model relating the dependent and explanatory variables to the latent disturbances; (2) we make few assumptions on the cardinality, location, or probabilities over equilibria. In particular, one can implement our test without assuming an equilibrium selection rule.

The need to reduce traffic congestion is becoming increasingly important. The means of achieving this aim involves optimising parameters such as traffic signal green-times, road prices and public transport fares. This paper will describe a new bilevel method of optimising traffic signals and prices. The method uses the steepest descent direction together with projections in order to define a descent direction which will reduce the objective function subject to the overriding necessity to be in equilibrium.

The paper will provide a description of the bilevel method together with results on two simple problems. Optimisation is performed on two functions simultaneously; the equilibrium function E (which must have value zero for equilibrium) and the objective function Z which is minimised subject to the constraint that E is zero. For most traffic problems equilibrium is not mathematically well behaved and therefore the method approaches equilibrium in stages, at each stage it minimises Z whilst avoiding the difficult equilibrium region.

This chapter offers the first full translation from Russian to English of the Balance of the National Economy of the USSR, 1924–26’s first chapter. Involving 12 authors and composed of 21 chapters, the Balance is a collective work published in June 1926 in Moscow by the Soviet Central Statistical Administration under the scientific supervision of its former director, Pavel Illich Popov (1872–1950). In this first chapter, titled ‘Studying the Balance of the National Economy: An Introduction’, Popov set the theoretical foundations of what might be considered as the first modern national accounting system and paved the way to multisector macroeconometric modelling.

Experimental economics has been treated with skepticism by some Austrian economists. We argue that experimental methods are consistent with strong versions of praxeology, and are therefore not methodologically problematic for Austrians. We further argue that experimental research methods have illustrated many uniquely Austrian themes and provide a fruitful method for future Austrian-inspired research.