Catálogo de publicaciones - revistas

<jats:p>The small open economy assumption cannot protect marginalist theory from the Sraffian critique. But a member of Sraffian ideas are not readily applicable in the open economy context.</jats:p>

<jats:title>Abstract</jats:title><jats:p>The paper argues that Harrodian instability is an instance of what Hicks in his book Capital and Growth (1965) called <jats:italic>static instability</jats:italic>, related to the <jats:italic>direction</jats:italic> (and not to the intensity) of the disequilibrium adjustment process. We show <jats:italic>why</jats:italic> such instability obtains in demand‐led growth models in which the ratio of capacity creating private investment to output ratio is given exogenously by the aggregate marginal propensity to save. We also show that Sraffian Supermultiplier model overcomes the Harrodian instability and that its demand‐led equilibrium is <jats:italic>statically stable</jats:italic>. It is explained that the latter results do not follow from the presence of autonomous non‐capacity creating expenditure component <jats:italic>as such</jats:italic> but from its presence within a model in which investment is driven by the capital stock adjustment principle (i.e., the flexible accelerator). Finally, we argue that, although being statically stable, the equilibrium growth path of the Sraffian Supermultiplier model can be <jats:italic>dynamically</jats:italic> stable or unstable depending on the <jats:italic>intensity</jats:italic> of the reaction of investment to demand. We then provide a discrete time sufficient condition for the dynamic stability of such equilibrium that implies that the marginal propensity to invest remains lower than the marginal propensity to save during the adjustment process, a modified <jats:italic>Keynesian stability condition</jats:italic>.</jats:p>

<jats:title>Abstract</jats:title><jats:p>In this paper, we empirically test the central hypothesis of the Sraffian Supermultiplier model (SSM)—that the growth of demand induces the share of capacity creating investment in output—for the U.S. economy from 1985 to 2017. Our results show that movements in the output growth rate cause the induced investment ratio, indicating that there is a tendency for utilization to converge slowly toward some exogenous normal level. And this together with other estimated parameters of the model suggest that the SSM adjustment mechanism has been dynamically stable for the U.S. data in the period under analysis.</jats:p>