Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in May 2017The Levy Economics Institute Working Paper Collection presents research in progress by Levy Institute scholars and conference participants. The purpose of the series is to disseminate ideas to and elicit comments from academics and professionals.Levy Economics Institute of Bard College, founded in 1986, is a nonprofit, nonpartisan, independently funded research organization devoted to public service. Through scholarship and economic research it generates viable, effective public policy responses to important economic problems that profoundly affect the quality of life in the United States and abroad. extended to address issues such as financialization and income distribution. We next discuss the implications of the approach for models of open economies and compare the methodologies adopted in developing SFC empirical models for whole countries. We review the contributions where the SFC approach is being adopted as the macroeconomic closure of microeconomic agent-based models, and how the SFC approach is at the core of new research in ecological macroeconomics. Finally, we discuss the appropriateness of the name "stock-flow consistent" for the class of models we survey.

Despite being arguably one of the most active areas of research in heterodox macroeconomics, the study of the dynamic properties of stock-flow consistent (SFC) growth models of financially sophisticated economies is still in its first steps. This paper attempts to offer a contribution to this line of research by presenting a simplified SFC Post-Keynesian growth model with well-defined dynamic properties and using it to shed light on the merits and limitations of the current heterodox SFC literature.It will be the objective of the historical model developed below to provide a simple analysis of capital accumulation by blending the stock and flow elements in the demand and supply of (i) real capital, (ii) money, and (iii) securities (. . .) with the more familiar concepts (. . .) of effective demand developed in the General Theory. Within such a framework it is possible to provide more perspective on the interplay among organized security exchanges, corporate financing policy, investment underwriters and the banking system in channeling the financial funds necessary for capital accumulation. Regrettably this is an analysis which is virtually ignored in most 'analytical' Post-Keynesian models.

Keynesian models of household behavior suggest that a shift in the distribution of income toward profits-or toward rentiers-should imply an increase in the propensity to save out of income for the population as a whole. However, the available empirical evidence for the United States shows that, starting in 1985, the propensity to save out of income for the household sector has decreased steadily. Starting in 1981, the share of income accruing to the richest 5 percent of the population increased steadily, with wide fluctuations related to capital gains on equities and, more recently, in the housing market. The aim of this paper is to lay down a growth model, grounded in the Post Keynesian stock-flow-consistent approach of Godley and Lavoie, to analyze the links between consumption and saving behavior of two classes of households-financial markets and the housing market. The model will be used from a theoretical perspective to analyze the dynamics of markets along a steady growth path.

Th is paper presents the main features of the macroeconomic model being used at Th e Levy Economics