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Articles 1 - 5 of 5
Full-Text Articles in Social and Behavioral Sciences
Some Short-Run Macroeconomic Considerations As Society Deals With A Once-In-Generations Pandemic, Arslan Razmi
Some Short-Run Macroeconomic Considerations As Society Deals With A Once-In-Generations Pandemic, Arslan Razmi
Economics Department Working Paper Series
COVID-19 constitutes a health crisis which has rapidly turned into a social and economic crisis. This paper briefly explores some of the issues raised by the combination of a massive supply-side shock with a massive demand-side shock, and the interaction of these with the exponential dynamics of a viral infection. The analysis suggests that, during the recovery, the state of infection among the existing workforce relative to that of the incoming one will play an important role in determining the dynamic interactions between economics and epidemiology. Perhaps counterintuitively, the logic of the basic epidemiological SI model suggests that, under plausible …
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 …
Real Exchange Rates And The Long-Run Effects Of Aggregate Demand In Economies With Underemployment, Peter Skott, Martin Rapetti, Arslan Razmi
Real Exchange Rates And The Long-Run Effects Of Aggregate Demand In Economies With Underemployment, Peter Skott, Martin Rapetti, Arslan Razmi
Economics Department Working Paper Series
Successful economic development to a large extent derives from the mobilization of underemployed resources. Demand policy can play an important role. It is critical, however, to consider balance of payments constraints and to ensure an expansion of investment in the modern sector. A combination of investment promotion and exchange rate intervention may be required to achieve these goals.
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.
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.