The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Tobin, James (1918–2002)

  • Donald D. Hester
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2435

Abstract

James Tobin was a brilliant economist and the leading proponent of Keynesian economics in the second half of the 20th century. He greatly advanced understanding of financial institutions and monetary theory and policy. He stressed the importance of asset holdings and wealth on consumer spending. He also argued that ‘q’, the ratio of a firm’s market value to the replacement value of its assets, was an important determinant of its investment decisions. He made major contributions to econometric methods, international economics, the theory of growth and business cycles, and policies designed to improve the welfare of minorities and the poor.

Keywords

Absolute income hypothesis Allais, M. American Economic Association Animal spirits Banking industry Baumol, W. Bonds Economic growth Financial intermediation Fiscal policy Fleming, J. Floating exchange rate Friedman, M. Government debt Household portfolios Income elasticity of demand Income velocity of money Interest rate elasticity Investment decisions IS–LM model Keynes, J. M. Keynesianism Leisure Liquidity preference Lucas, R. Maximum likelihood Measure of economic welfare (MEW) Monetarism Monetary policy Monetary theory Monetary transmission mechanism Multicollinearity Mundell, R. National income accounts Negative income tax Non-accelerating inflationary rate of unemployment (NAIRU) Permanent-income hypothesis Phillips curve Pollution Portfolio balance Portfolio demand for money Rational expectations hypothesis Rationing Relative income hypothesis Ricardian equivalence theorem Solow, R. Stocks and flows Swan, T. Technology Traditional vs modern Tobin tax Tobin, J. Tobin’s q Tobit model Transactions demand for money Wage rigidity 
This is a preview of subscription content, log in to check access

Bibliography

  1. Allais, M. 1947. Economie et intérêt. Paris: Impremerie Nationale.Google Scholar
  2. Barro, R. 1974. Are government bonds net wealth? Journal of Political Economy 82(6): 1095–1117.CrossRefGoogle Scholar
  3. Baumol, W. 1952. The transactions demand for cash: An inventory theoretic approach. Quarterly Journal of Economics 66: 545–556.CrossRefGoogle Scholar
  4. Borch, K. 1969. A note on uncertainty and indifference curves. Review of Economic Studies 36: 1–4.CrossRefGoogle Scholar
  5. Breit, W., and Spencer, R., eds. 1986. Tobin. In Lives of the laureates. Cambridge: MIT Press.Google Scholar
  6. Buiter, W. 2003. James Tobin: An appreciation of his contribution to economics. Economic Journal 113: 585–631.CrossRefGoogle Scholar
  7. Duesenberry, J. 1949. Income, saving, and the theory of consumer behavior. Cambridge: Harvard University Press.Google Scholar
  8. Feldstein, M. 1969. Mean-variance analysis in the theory of liquidity preference and portfolio selection. Review of Economic Studies 36: 5–12.CrossRefGoogle Scholar
  9. Fleming, J. 1962. Domestic financial policies under fixed and under floating exchange rates. International Monetary Fund Staff Papers 9: 369–379.CrossRefGoogle Scholar
  10. Friedman, M. 1968. The role of monetary policy. American Economic Review 58(1): 1–17.Google Scholar
  11. Hayashi, F. 1982. Tobin’s marginal q and average q: A neoclassical interpretation. Econometrica 50: 213–224.CrossRefGoogle Scholar
  12. Lucas, R. 1972. Econometric testing of the natural rate hypothesis. In The economics of price determination conference, ed. O. Eckstein. Washington, DC: Board of Governors of the Federal Reserve System.Google Scholar
  13. Keynes, J.M. 1936. General theory of employment, interest, and money. New York: Macmillan.Google Scholar
  14. Magnus, J., and M. Morgan, eds. 1997. The experiment in applied econometrics. Journal of Applied Econometrics 12(5): 459–662.Google Scholar
  15. Markowitz, H. 1959. Portfolio Selection: Efficient diversification of investments. Cowles Foundation Monograph 16. New York: John Wiley and Sons.Google Scholar
  16. Mundell, R. 1961. Flexible exchange rates and employment policy. Canadian Journal of Economics and Political Science 27: 509–517.CrossRefGoogle Scholar
  17. Phelps, E. 1967. Phillips curves, expectations of inflation, and optimal unemployment over time. Economica 34: 254–281.CrossRefGoogle Scholar
  18. Solow, R. 1956. A contribution to the theory of economic growth. Quarterly Journal of Economics 70: 65–94.CrossRefGoogle Scholar
  19. Swan, T. 1956. Economic growth and capital accumulation. Economic Record 32: 334–361.CrossRefGoogle Scholar
  20. ul Haq, M., I. Kaul, and I. Grunberg, eds. 1996. The Tobin Tax: Coping with financial volatility. New York: Oxford University Press.Google Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Donald D. Hester
    • 1
  1. 1.