Inflation, income distribution and X - efficiency theory

This work presents a profound challenge to established economics which is conventional both in subjects covered and methods used. It considers a neglected area, considering inflation from a microeconomic viewpoint and exploring the linkages between X efficiency theory, inflation, bargaining power, income distribution and employment in developing countries. Some degree of unequal bargaining power, bargain processes and their consequences are viewed as central elements of the inflationary process in the sectors emphasised, caused as much by the individual firms' behaviour and pricing policies as by those macroeconomic factors traditionally viewed as the cause. The author is highly critical of established theory and suggests alternatives to it. X-efficiency itself is a radical departure from economists' pre occupation with maximisation.

Whilst the subject matter covered and the policy recommendations made will interest development specialists, the theoretical implications of this book will arouse great interest amongst economists generally.