Journal ArticleDOI
Growth Rate and Level Effects, the Stability of the Adjustment of Capacity to Demand and the Sraffian Supermultiplier
Fabio Freitas,Franklin Serrano +1 more
TLDR
In this paper, the authors present a simple but complete formal version of the Sraffian supermultiplier model in which growth is led by the autonomous components of demand that do not create capacity.Abstract:
The paper presents a simple but complete formal version of the Sraffian supermultiplier model in which (i) growth is led by the autonomous components of demand that do not create capacity; (ii) private productive investment is an induced expenditure; and (iii) income distribution is exogenous. We show that the main results of the long-period and fully adjusted versions of the model in terms of growth rate and level effects are quite similar and therefore that such results in no way require the full adjustment of capacity to demand. We then analyze a simple set of sufficient dynamic local stability conditions that allow the long-period positions to gravitate towards the fully adjusted position in which capacity is adjusted to demand and that also provide the upper limit to demand-led growth paths. Finally, we show how some critics of the model have misinterpreted it as being supply-led and how this has led to a further confusion between the analysis of the tendency towards a constant value of the c...read more
Citations
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Journal ArticleDOI
Demand-led growth and accommodating supply
TL;DR: In this article, a model of demand-driven growth with endogenous adjustment of labour supply and productivity is presented, which reconciles Harrod's warranted rate of demand growth with supply, and empirical results show that a wide range of growth rates are feasible across different demand regimes.
Journal ArticleDOI
Neo-Kaleckian and Sraffian Controversies on the Theory of Accumulation
TL;DR: The authors assesses the controversy on demand-led growth that has taken place since the mid-1980s between neo-Kaleckian and Sraffian authors and argue that this second approach is the most promising framework for analysing economic growth.
Journal ArticleDOI
Aggregate demand and the slowdown of Brazilian economic growth in 2011-2014
Franklin Serrano,Ricardo Summa +1 more
TL;DR: In this article, the sharp slowdown in the Brazilian economy for the years 2011-2014 is investigated and it is shown that the slowdown is overwhelmingly the result of a sharp decline in domestic demand, rather than a fall in exports and even less any change in external financial conditions.
Journal ArticleDOI
Long-run Effective Demand in the US Economy: An Empirical Test of the Sraffian Supermultiplier Model
TL;DR: In this article, the long-run relation between autonomous demand and output through cointegration analysis was studied and it was shown that autonomous demand is cointegrated with output and autonomous demand exerts a long run effect on output.
References
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Book ChapterDOI
The Non-linear Accelerator and the Persistence of Business Cycles
TL;DR: In this article, a succession of increasingly complex models, the nature and methods of analysing non-linear cycle models are developed, and the roles of lags and of secular evolution are illustrated.
Book
Post-Keynesian Economics: New Foundations
Marc Lavoie,Marc Lavoie +1 more
TL;DR: In this paper, the authors discuss the essentials of Heterodox and post-Keynesian economics and the theory of choice, credit, money, central banks, and effective demand and employment.