Araujo, Ricardo Azevedo and Teixeira, Joanílio Rodolpho (2011): Decisions on investment allocation in the post-Keynesian growth models.
Download (219Kb) | Preview
In this article the analysis developed by Feldman (1928) and Mahalanobis (1953) are incorporated to the Post-Keynesian Growth Model to consider the decisions of investment allocation on economic growth. By adopting this approach it is possible to study the interaction between distributive features and investment allocation which allows us to determine the rate of investment allocation according to the equilibrium decisions of investment and savings. Finally, an additional condition is added to the Post Keynesian Growth Model in order to fully characterise the equilibrium path in an extended version of this framework, where capital goods are also needed to produce capital goods.
|Item Type:||MPRA Paper|
|Original Title:||Decisions on investment allocation in the post-Keynesian growth models|
|English Title:||Decisions on Investment Allocation in the Post-Keynesian Growth Models|
|Keywords:||Post-Keynesian growth model, structural change, multi-sector models|
|Subjects:||E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E12 - Keynes; Keynesian; Post-Keynesian
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E21 - Consumption; Saving; Wealth
|Depositing User:||Ricardo Araujo|
|Date Deposited:||23. Sep 2011 11:24|
|Last Modified:||12. Feb 2013 09:20|
Araujo, J. 1992–93. The government sector in Kaldor-Pasinetti Models. Journal of Post-Keynesian Economics 15(2), 211 – 228.
Araujo, R. and Teixeira, J. 2011. A Multi-sector version of the Post-Keynesian Growth Model. Proceedings of the VIII International Colloquium on Growth, Structural Change and Institutions, 25 – 46. Edited by: Thomas Boyland and Srinivas Raghavendra. Galway, Ireland.
Araujo, R. and Teixeira, J. 2002. Structural change and decisions on investment allocation. Structural Change and Economic Dynamics 13, 249–258.
Bhaduri, A. and Marglin, S. 1990. Unemployment and the real wage: the economic basis for contesting political ideologies. Cambridge Journal of Economics, 14 (4), 375– 93.
Blecker, R. 2002. Distribution, demand and growth in neo-Kaleckian macro-models. In: Setterfield, M. (Org.). The Economics of Demand-led Growth: Challenging the Supply-side Vision of the Long Run. Cheltenham, UK; Northampton, MA: Edward Elgar, 129 – 152.
Bose, S. 1968. Optimal Growth and Investment Allocation. Review of Economic Studies, 456 – 480.
Dutt, A. 1984. Stagnation, income distribution and monopoly power. Cambridge Journal of Economics 8, 25 – 40.
Dutt, A, 1987. Alternative closures again: a comment on growth, distribution and inflation. Cambridge Journal of Economics 11, 75 – 82.
Dutt, A. 1990. Growth, distribution and uneven development. Cambridge University Press, Malta.
Halevi, J. 1996. The significance of the theory of vertically integrated processes for the problem of economic development. Structural Change and Economic Dynamics 7, 163 – 171.
Harrod, R. 1933. International economics. Cambridge, UK: Cambridge University Press.
Kaldor, N. 1957. A model of economic growth. Economic Journal LXVII: 591-624.
Kalecki, M. 1954. Theory of Economic Dynamics: An Essay on Cyclical and Long-Run Changes in Capitalist Economy. London: Allen and Unwin.
Kalecki, M. 1968. The Marxian Equations of Reproduction and Modern Economics. Social Sciences Information 7, 73 – 79. Lavoie, M. 2006. Introduction to Post-Keynesian Economics. Palgrave, MacMillan.
Lavoie, M. 2003. Kaleckian Effective Demand and Sraffian Normal Prices: Towards a Reconciliation. Review of Political Economy 15(1), 53 – 74.
Lavoie, M. 1997. Pasinetti’s vertically hyper-integrated sectors and natural prices. Cambridge Journal of Economics, 21.
Nell, E. 1989. The Rate of Profit in Kalecki’s Theory. In: Kalecki’s Relevance Today. Edited by Mario Sebatiani. Published by the Macmillan Press Ltd. London.
Mott, T. 2002. Longer-run aspects of Kaleckian macroeconomics. In: Setterfield, M. (Org.). The Economics of Demand-led Growth: Challenging the Supply-side Vision of the Long Run. Cheltenham, UK; Northampton, MA: Edward Elgar, 153 – 171.
Pasinetti, L. 1973. The notion of vertical integration in economic analysis. Metroeconomica, 25, 1 – 29.
Pasinetti, L. 1981. Structural Change and Economic Growth – A Theoretical Essay on the Dynamics of the Wealth of the Nations. Cambridge: Cambridge University Press.
Pasinetti, L. 1988. Growing sub-systems, vertically hyper-integrated sectors and the labour theory of value. Cambridge Journal of Economics, 12, 125 -- 34.
Pasinetti, L. 1990. Sraffa’s circular process and the concept of vertical integration. In Essays on Pierro Sraffa. Edited by K. Bharadwaj and B. Schefold. London: Unwin Hyman.
Pasinetti, L. 1993. Structural Economic Dynamics – A Theory of the Economic Consequences of Human Learning. Cambridge: Cambridge University Press.
Pasinetti, L. 2005. The Cambridge School of Keynesian Economics. Cambridge Journal of Economics, 29, 837-848. Pasinetti, L. 2007. Keynes and the Cambridge Keynesians: A ‘Revolution in Economics’ to be Accomplished. Cambridge: Cambridge University Press.
Robinson, J., 1956. The Accumulation of Capital. London: Macmillan.
Robinson, J. 1962. Essays in the Theory of Economics Growth, London, Macmillan.
Rowthorn, R. 1982. Demand, Real Wages and Economic Growth, Studi Economici, no. 18.
Scazzieri, R. 1990. Vertical Integration in Economic Theory. Journal of Post Keynesian Economics 13(1), 20 – 46.
Steindl, J., 1952. Maturity and Stagnation in American Capitalism. New York: Monthly Review Press.
Steedman, I. 1992. Questions for Kaleckians. Review of Political Economy 4, 125 – 151.
Stockhammer, E. 1999. Robinsonian and Kaleckian growth. An update on Post-Keynesian growth theories. Working paper no. 67, Vienna University of Economics, Department of Economics.
Weitzman. M. 1971. Shiftable Versus Non-shiftable Capital: A Synthesis. Econometrica, 511 – 529.