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Articles 1 - 11 of 11
Full-Text Articles in Social and Behavioral Sciences
Aggregate Demand Policy In Mature And Dual Economies, Peter Skott
Aggregate Demand Policy In Mature And Dual Economies, Peter Skott
Economics Department Working Paper Series
Aggregate demand is important, both in the short and the long run, but a basic distinction must be made between dual and mature economies. Mature economies may suffer from a structural aggregate problem ('secular stagnation'): full-employment growth may be impossible in the absence of sustained fiscal stimulus. Dual economies with high levels of open or hidden unemployment, by contrast, do not face long-run structural aggregate demand problems. They require public investment in key areas, including education and infrastructure, but the key problems concern the composition of demand and the need to expand the modern sector. These economies face structural transformation …
Public Debt And Growth: An Assessment Of Key Findings On Causality And Thresholds, Michael Ash, Deepankar Basu
Public Debt And Growth: An Assessment Of Key Findings On Causality And Thresholds, Michael Ash, Deepankar Basu
PERI Working Papers
We provide a comprehensive assessment of the relationship between public debt and GDP growth in the postwar advanced economies. We use the timing of changes in public debt and growth to account for endogeneity, and find little evidence of a negative relationship. Semi-parametric estimates do not indicate any threshold effects. Finally, we reconcile our results with four recent, influential papers that found a substantial negative relationship, especially when public debt exceeds 90 percent of GDP. These earlier results appear to derive mostly from peculiar parametric specifications of nonlinearities, or use of small samples which amplify the influence of outliers.
Public Debt And Growth: An Assessment Of Key Findings On Causality And Thresholds, Michael Ash, Deepankar Basu, Arindrajit Dube
Public Debt And Growth: An Assessment Of Key Findings On Causality And Thresholds, Michael Ash, Deepankar Basu, Arindrajit Dube
Economics Department Working Paper Series
We provide a comprehensive assessment of the relationship between public debt and GDP growth in the postwar advanced economies. We use the timing of changes in public debt and growth to account for endogeneity, and find little evidence of a negative relationship. Semi-parametric estimates do not indicate any threshold effects. Finally, we reconcile our results with four recent, influential papers that found a substantial negative relationship, especially when public debt exceeds 90 percent of GDP. These earlier results appear to derive mostly from peculiar parametric specifications of nonlinearities, or use of small samples which amplify the influence of outliers.
The Gospel Of Co-Operative Capitalism: Acolytes And Apostates, William E. Mccolloch
The Gospel Of Co-Operative Capitalism: Acolytes And Apostates, William E. Mccolloch
PERI Working Papers
The present paper seeks to locate the Bhaduri-Marglin (B-M) model as an historical outcome of the Left's internal disputes over the prospects for social democracy. In better contextualizing the B-M model as a historical response to the perceived political economic failings of the social compromises upon which the growth of post-War advanced capitalist economies had rested, both the model’s popularity and its potential limitations can more easily be understood. Though the B-M framework has frequently come to be referred to as the neo- or post-Kaleckian growth model, such labels perhaps obscure the model's diverse ancestry. The model constituted an attempt …
Inequality And Growth In Neo-Kaleckian And Cambridge Growth Theory, Thomas I. Palley
Inequality And Growth In Neo-Kaleckian And Cambridge Growth Theory, Thomas I. Palley
PERI Working Papers
This paper examines the relationship between inequality and growth in the neo-Kaleckian and Cambridge growth models. The paper explores the channels whereby functional and personal income distribution impact growth. The growth – inequality relationship can be negative or positive, depending on the economy’s characteristics. Contrary to widespread claims, inequality per se does not impact growth. Instead, both growth and inequality are impacted by changes in the underlying forms and pattern of income payments. However, inequality is critical at the microeconomic level as it explains differences in household propensities to consume which are at the foundation of neo-Kaleckian and Cambridge growth …
The Real Exchange Rate And Economic Growth: Some Observations On The Possible Channels, Martin G. Rapetti
The Real Exchange Rate And Economic Growth: Some Observations On The Possible Channels, Martin G. Rapetti
Economics Department Working Paper Series
No abstract provided.
The Real Exchange Rate And Economic Growth: Are Developing Countries Different?, Martin Rapetti, Peter Skott, Arslan Razmi
The Real Exchange Rate And Economic Growth: Are Developing Countries Different?, Martin Rapetti, Peter Skott, Arslan Razmi
Economics Department Working Paper Series
Recent research has found a positive relationship between real exchange rate (RER) undervaluation and economic growth. Different rationales for this association have been offered, but they all imply that the mechanisms involved should be stronger in developing countries. Rodrik (2008) explicitly analyzed and found evidence that the RER-growth relationship is more prevalent in developing countries. We show that his finding is very sensitive to the criterion used to divide the sample between developed and developing countries. We then use alternative classification criteria and empirical strategies to evaluate the existence of asymmetries between groups of countries and find that the effect …
An Empirical Evaluation Of Three Post Keynesian Models, Peter Skott, Ben Zipperer
An Empirical Evaluation Of Three Post Keynesian Models, Peter Skott, Ben Zipperer
Economics Department Working Paper Series
Structuralist and post Keynesian models differ in their assumptions about firms’ investment behavior and pricing/output decisions. This paper compares three benchmark models: Kaleckian, Robinsonian and Kaldorian. We analyze the implications of these models for the steady growth path and the cyclical properties of the economy, and evaluate the consistency of the theoretical predictions with empirical evidence for the US. Our regression results and the stylized cyclical pattern of key variables are consistent with the Kaldorian model. The Kaleckian investment function and the Robinsonian pricing behavior find no support in the data.
A Classical-Marxian Model Of Education, Growth And Distribution, Amitava Krishna Dutt, Roberto Veneziani
A Classical-Marxian Model Of Education, Growth And Distribution, Amitava Krishna Dutt, Roberto Veneziani
Economics Department Working Paper Series
This paper develops a classical-Marxian macroeconomic model to examine the growth and distributional consequences of education. First, the role of education in skill formation is considered and it is shown that an expansion in education will promote growth and have beneficial distributional effects within the working class, but it will redistribute income from workers to capitalists. Second, the model is extended analyze the broader political economic consequences of education on class relations and class conflict. The model suggests the importance of a progressive type of education rather than one which weakens the power workers, for it allows for equitable growth …
Cyclical Patterns Of Employment, Utilization And Profitability, Ben Zipperer, Peter Skott
Cyclical Patterns Of Employment, Utilization And Profitability, Ben Zipperer, Peter Skott
Economics Department Working Paper Series
The interaction between income distribution, accumulation, employment and the utilization of capital is central to macroeconomic models in the `heterodox' tradition. This paper examines the stylized pattern of these variables using US data for the period after 1948. We look at the trends and cycles in individual time series and examine the bivariate cycical patterns among the variables.
Japanese Growth And Stagnation: A Keynesian Perspective, Takeshi Nakatani, Peter Skott
Japanese Growth And Stagnation: A Keynesian Perspective, Takeshi Nakatani, Peter Skott
Economics Department Working Paper Series
This paper uses a modified Harrodian model to understand both the long period of rapid Japanese growth and the recent period of stagnation. The model has multiple steady-growth solutions when the labour supply is highly elastic, and government intervention, we argue, took the Japanese economy onto a high-growth trajectory. Labour constraints began to appear around 1970, and a combination of high saving rates and slow population growth account for the stagnation of the 1990s. This combination produces a structural liquidity trap and threatens the sustainability of attempts to ensure near full employment through …fiscal policy or by running a persistent …