Kalecki Versus Keynes on the Determinants of Investment

López, J. García; Mott, Tracy

doi:10.1080/095382599107020

Cited by 22 publications

(14 citation statements)

References 9 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Investment is an intrinsically dynamic process (Bond and Meghir, 1994;Lopez and Mott, 1999) and there is a path dependency which links past and future levels of investment. Therefore, in line with the literature, our specification includes lagged investment as an explanatory variable (Ford and Poret, 1991;Kopcke and Brauman, 2001;Orhangazi, 2008).…”

Section: Specifications Of the Modelmentioning

confidence: 99%

Financialization, financial development and investment. Evidence from European non-financial corporations

Tori

Onaran

2018

Socio-Economic Review

View full text Add to dashboard Cite

This article provides estimations of the effects of different financial channels on physical investment in Europe using the balance sheets of publicly listed non-financial corporations (NFCs) for the period 1995–2015. The evidence suggests that both financial payments and financial income have an adverse effect on investment in fixed assets. The negative impacts of increasing financial income are non-linear with respect to company size: they crowd out investment in large companies, and have a positive effect on the investment of relatively smaller companies. Similar to the recent literature on finance-growth nexus, we find an inverted U-shaped relationship between financial development and companies’ investment. However, in contrast to the existing literature, we also find that a higher degree of financial development in the country is associated with a stronger negative effect of financial income on investment.

show abstract

Section: Specifications Of the Modelmentioning

confidence: 99%

Financialization, financial development and investment. Evidence from European non-financial corporations

Tori

Onaran

2018

Socio-Economic Review

View full text Add to dashboard Cite

show abstract

“…Within the Post-Keynesian theory, capital accumulation is an intrinsically dynamic process (Kalecki, 1954;Lopez and Mott, 1999). Physical investment is an irreversible phenomenon.…”

Section: The Theoretical Modelmentioning

confidence: 99%

The Effects of Financialisation and Financial Development on Investment: Evidence from Firm-Level Data in Europe

Tori

Onaran²

2017

SSRN Journal

View full text Add to dashboard Cite

In this paper we estimate the effects of financialization on physical investment in selected western European countries using panel data based on the balance-sheets of publicly listed non-financial companies (NFCs) supplied by Worldscope for the period 1995-2015. We find robust evidence of an adverse effect of both financial payments (interests and dividends) and financial incomes on investment in fixed assets by the NFCs. This finding is robust for both the pool of all Western European firms and single country estimations. The negative impacts of financial incomes are non-linear with respect to the companies' size: financial incomes crowd-out investment in large companies, and have a positive effect on the investment of only small, relatively more credit-constrained companies. Moreover, we find that a higher degree of financial development is associated with a stronger negative effect of financial incomes on companies' investment. This finding challenges the common wisdom on 'finance-growth nexus'. Our findings support the 'financialization thesis' that the increasing orientation of the non-financial sector towards financial activities is ultimately leading to lower physical investment, hence to stagnant or fragile growth, as well as long term stagnation in productivity. Year: 2017No: GPERC 44 GREENWICH POLITICAL ECONOMY RESEARCH CENTRE (GPERC)2

show abstract

“… Véase, por ejemplo, Blinder (2006).4 El intercambio de cartas se encuentra enOsiatyńsky (1990). Véanse tambiénLópez y Mott (1999) y López y Assous (2010).…”

unclassified

En memoria de Kalecki: estudios sobre la economía de los Estados Unidos

López

2020

El Trimestre

View full text Add to dashboard Cite

Michał Kalecki escribió un artículo sobre el gasto público financiado por impuestos sobre las ganancias, el cual incentivó un interesante debate entre él y Keynes; éste último fue el editor de la revista en que el artículo se publicó. Más tarde, en los años cincuenta, Kalecki realizó algunos estudios empíricos para alimentar su teoría. Dos de éstos trataban sobre la economía de los Estados Unidos, y en ellos adoptó un nuevo método de análisis. Sin embargo, su metodología no tuvo el impacto que merecía, incluso entre sus seguidores. Este artículo retoma el análisis de Kalecki con el fin de comprender la evolución reciente de la economía estadunidense.

show abstract

Kalecki Versus Keynes on the Determinants of Investment

Cited by 22 publications

References 9 publications

Financialization, financial development and investment. Evidence from European non-financial corporations

Financialization, financial development and investment. Evidence from European non-financial corporations

The Effects of Financialisation and Financial Development on Investment: Evidence from Firm-Level Data in Europe

En memoria de Kalecki: estudios sobre la economía de los Estados Unidos

Contact Info

Product

Resources

About