Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/270476 
Authors: 
Year of Publication: 
2022
Series/Report no.: 
FMM Working Paper No. 78
Publisher: 
Hans-Böckler-Stiftung, Macroeconomic Policy Institute (IMK), Forum for Macroeconomics and Macroeconomic Policies (FMM), Düsseldorf
Abstract: 
This paper provides a theoretical and empirical evaluation of neo-Kaleckian supermultiplier and neo-Goodwinian models. The benchmark structuralist and Harrodian neo-Goodwinian models posit a macro economy with only one asset: the capital stock. Demand leakages presuppose that at least one sector is able to realise an excess of revenues over expenditures as a positive accumulation of net financial assets vis-à-vis other sectors. Models with a single real asset-and which assume each sector always has nil net lending/borrowing-provide pseudo explanations of real world economic activity. We show that neo-Kaleckian supermultiplier models with overhead labour can account for the induced nature of capacity investment, a pro-cyclical profit share and stylised net lending/borrowing patterns.
Subjects: 
Pseudo-Goodwin cycles
External markets
Net lending/borrowing
Overhead labour
JEL: 
B22
B50
E11
E20
E30
O40
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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