Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/174408
Authors: 
Skott, Peter
Year of Publication: 
2016
Series/Report no.: 
Working Paper 2016-16
Abstract: 
A recent literature introduces autonomous demand as the driver of long-run economic growth and as a stabilizing force that tames Harrodian instability. The argument is unconvincing. The stabilizing effect is modest for plausible parameter values and, more importantly, it is questionable whether any components of aggregate demand can be viewed as autonomous in the long run. By contrast, models that include the supply side (the labor market) and/or economic policy can address Harrodian instability and produce level and growth effects that resemble those derived in the literature on autonomous demand.
Subjects: 
supermultiplier
Harrodian instability
Kaleckian models
JEL: 
E11
E12
O41
Document Type: 
Working Paper

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