Araujo, Ricardo Azevedo and Teixeira, Joanílio Rodolpho (2011): A multi-sector version of the Post-Keynesian growth model.
Download (282kB) | Preview
With this inquiry we seek to develop a disaggregated version of the post-Keynesian approach to economic growth, by showing that indeed it can be treated as a particular case of the Pasinettian model of structural change and economic expansion. By relying upon vertical integration it becomes possible to carry out the analysis initiated by Kaldor (1956) and Robinson (1956, 1962), and followed by Dutt (1984), Rowthorn (1982) and later Bhaduri and Marglin (1990) in a multi-sectoral model in which demand and productivity increase at different paces in each sector. By adopting this approach it is possible to show that the structural economic dynamics is conditioned not only to patterns of evolving demand and diffusion of technological progress but also to the distributive features of the economy, which can give rise to different regimes of economic growth. Besides, we find it possible to determine the natural rate of profit that makes the mark-up rate to be constant over time.
|Item Type:||MPRA Paper|
|Original Title:||A multi-sector version of the Post-Keynesian growth model|
|Keywords:||Post-Keynesian growth model, structural change, multi-sector models|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development
D - Microeconomics > D3 - Distribution > D33 - Factor Income Distribution
E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E11 - Marxian ; Sraffian ; Kaleckian
|Depositing User:||Ricardo Araujo|
|Date Deposited:||16. Apr 2011 13:58|
|Last Modified:||15. Feb 2013 00:06|
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. 2002. Structural change and decisions on investment allocation. Structural Change and Economic Dynamics 13, 249–258.
Bellino, E. 2010. Employment and income distribution from a Classical-Keynesian viewpoint: some tools to ground a normative analysis. In E. Brancaccio and G. Fontana (eds.), The Global Economic Crisis: New Perspectives on the Critique of Economic Theory and Policy, Routledge, London, 2011.
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. 1989. International competition, income distribution and economic growth, Cambridge Journal of Economics, 13, 395–412.
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.
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.
Eatwell, J. 1983. The long period theory of employment. Cambridge Journal of Economics 7, 269 – 285.
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.
Harcourt, G. 2010. Foreword to the Symposium in Memory of John Cornwall. Review of Political Economy 22, 477–480.
Harcourt, G. 1987. Foreword. In: Kriesler, Peter. Kalecki's microanalysis: The development of Kalecki's analysis of pricing and distribution. Cambridge: Cambridge Univ Press. Harrod, R. 1933. International economics. Cambridge, UK: Cambridge University Press.
Jossa, B. 1989. Class Struggle and Income Distribution in Kaleckian Theory. In: Kalecki’s Relevance Today. Edited by Mario Sebatiani. Published by the The Macmillan Press Ltd. London.
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.
Ocampo, A. 2005. The Quest for Dynamic Efficiency. In: Beyond Reforms: Structural Dynamics and Macroeconomic Vulnerability. Edited by José A. Ocampo. Stanford University Press.
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.
Sebastiani, M. 1989. Introduction: Kalecki’s Relevance Today. In: Kalecki’s Relevance Today. Edited by Mario Sebatiani. Published by the The Macmillan Press Ltd. London.
Scazzieri, R. 1990. Vertical Integration in Economic Theory. Journal of Post Keynesian Economics 13(1), 20 – 46.
Smith, A. 1976 , An Inquire into the Nature and Causes of the Wealth of Nations. Edited by Campbell R., Skinner, A. and Todd, W., Oxford: Clarendon Press.
Solow, R. 1956. A contribution to the theory of economic growth. Quaterly Journal of Economics 70, 65 – 94.
Sraffa, P. 1960. Production of Commodities by Means of Commodities. Cambridge University Press, Cambridge.
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.
Taylor, L., 1985. A stagnationist model of economic growth. Cambridge Journal of Economics 9, 383 – 403.
Thirlwall, A. 1979. The balance of payments constraint as an explanation of international growth rate differences. Banca Nazionale del Lavoro Quarterly Review, 128, 45 – 53.
Trigg, A. and Lee, F. 2005. Pasinetti, Keynes and the multiplier, Review of Political Economy, 17(1), 29 – 43.
Vianello, F. 1989. Effective Demand and the Rate of Profits: Some Thoughts on Marx, Kalecki and Sraffa. In: Kalecki’s Relevance Today. Edited by Mario Sebatiani. Published by the Macmillan Press Ltd. London.