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A model of the Keynesian theory for Portugal

Martinho, Vítor João Pereira Domingues (2011): A model of the Keynesian theory for Portugal.

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With this work we try to present a model for Portugal based on the Keynesian theory. We built the model taking into account the Verdoorn Law, with the alternative specifications of (1)Kaldor (1966), for the five Portuguese regions (NUTS II) and from 1986 to 1994. We had in mind, yet in this work, the alternative interpretation of (2)Rowthorn (1975) of the Verdoorn's Law for the same regions and periods. The results of this work will be complemented with estimates of these relationships to other sectors of the economy than the industry (primary and services sector) and for the total economy of each region.

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