A New Model of the Economy [Hardcover]

"The author claims that economists today employ 'flat-earth' models, which are unrealistic. They ignore the huge influence of spatial location, which gives rise to economic, or Ricardian, rent. In short, the book offers a model for fundamental reform." --"Abstracts of Public Administration, Development and Environment (APADE)"

"This is a major new work of great potential importance. It is not a book which seeks to persuade, although it is persuasive: it is a book which seeks to explain, in a clear and systematic manner, that which modern economic science orthodoxy has been unable to explain it in a manner that is addressed to those who need to understand. Hodgkinson describes economic science in the fullness of its reality, and in all its dimensions including the hitherto improperly recognise dimension - land. If epiphanies can come from text books, unsuspecting readers might expect one here."

Presents a new model of economic theory that takes into consideration the idea of spatial location.

... is both exciting and timely. It provides detailed insight on how the addiction to land speculation became the foundation of the United States of America

Presents a new model of economic theory that takes into consideration the idea of spatial location.

The author claims that economists today employ "flat-earth" models, which are unrealistic.They ignore the huge influence of spatial location, which gives rise to economic, or Ricardian, rent. He also asks "How do banks create money?" and "Why is there an interest rate at all?" His answers point to a way out of the current confusion over the proper role of the banking system. The book offers a model for fundamental reform.

The book offers a radical revision of modern economic theory. Its starting point is the existing body of both micro and macro economics, as developed in such textbooks as "Economics" by Begg, Fischer and Dombusch and "Positive Economics" by Lipsey and Chrystal. Following a similar framework as these books, it adjusts the whole range of theory by introducing some new concepts and other earlier ones that have been much neglected in the economic thought of the past century. These are related especially to the fundamental part played by land, in its proper sense of all natural resources available on the earth, the significance of credit, especially through the banking system, and the crucial impact of the method of taxation. The resulting analysis yields a thoroughly revised version on the contemporary model of a capitalist economy, so that a genuine 'third way' is revealed. This is not a mere modification of the present system of absentee ownership confronting a market for labour, with all the attendant evils of unemployment, monopoly and misdistribution of wealth and income. Rather it is a system based upon natural law, exhibiting economic security for all, fair distribution of output and, above all, the opportunity for self-fulfilment through work. The "new model"; draws upon the masters of economic thought from Smith and Ricardo, to Marshall, Schumpeter and Keynes by highlighting concepts often omitted from current studies of their works; such as Ricardo's' analysis of scarcity and differential elements of rent, Schumpeter's view of the role of banking and Keynes' hints at a labour theory of value. Indeed, this far reaching revision makes bold advances upon the Marshallian theory of the firm and the Keynesian theory of national income determination, thus providing new insights into both micro and macro theory. It remains faithful, however, to the tradition of these latter thinkers in explaining matters fully in words and resorting to mathematics mainly through the use of diagrams intelligible to anyone with an elementary grasp of the subject. Whilst the book strives to avoid value judgments in the interests on social science, it undoubtedly carries strong implications about economic policy. These are bound up with the central notions of free land and free credit, which have been singularly ignored by policy-makers since a few valiant attempts to introduce them in the early twentieth century. Hence the 'new model' is offered to both theorists and practitioners of Economics, to politicians and public servants, but particularly to those who, like the author, truly seek a new vision of the subject.

After qualifying as a Chartered Accountant, Brian Hodgkinson won a scholarship to Balliol College, Oxford where he took a first in Philosophy, Politics and Economics. After five years lecturing in the Social Studies School at Sussex University, he became Head of Economics at Dulwich College and then at St James Schools in London. As the founder editor of the Economics journal 'British Economics Survey', he kept in touch with applied Economics and questions of public policy.