Revisiting a Macroeconomic Controversy: The Case of the Multiplier–Accelerator Effect

Mourão, Paulo Reis; Popescu, Irina Alina

doi:10.3390/economies10100249

Cited by 4 publications

(3 citation statements)

References 59 publications

(76 reference statements)

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“…Equations in system (35) are independent. The second equation of the system describes the rotational motion with unit speed (frequency).…”

Section: Methodsmentioning

confidence: 99%

“…The study of the "multiplier-accelerator" system, on which Neo-Keynesian theories of growth are based, and the construction of economic dynamics models which takes into account the characteristics of the interaction between accumulation and consumption are leading tasks of macroeconomics theory. One of the most difficult problems that arise when constructing mathematical models of the interaction of the investment multiplier, which shows how much the marginal propensity to save limits GDP growth, and the accelerator, which reflects the growth of the capital intensity of national income as a result of the initial investments multiplier effect, is the justification of the choice of the structure of this delay impact [23], [35], [38]. Thanks to the action of the multiplier, a change in investment causes a change in national income, which in turn causes a further change in investment, and then -a further change in income, etc.…”

Section: Introductionmentioning

confidence: 99%

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Non-linear model of the macroeconomic system dynamics: multiplier-accelerator

Dorokhov,

Lebedeva,

Malyarets

et al. 2023

BUT_Series_III

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The article discusses one of the classic problems of macroeconomic dynamics, on which the neo-Keynesian theory of growth is based, so that the interaction between the multiplier and the accelerator. A new approach was proposed to develop a mathematical model of the dynamics of the mutual multiplier, which indicates the marginal propensity to save as a result of the GDP growth, and the accelerator, which reflects the growth of capital of the national income in the multiplier. The model is based on the hypothesis of non-linear dependence of the consumption on the amount of profit. This assumes that consumption growth is limited, i.e., a saturation effect occurs. In addition, the model took into account the delayed reaction of the accelerator to the influence of the multiplier. Under building the model, the considered processes were considered continuous in time. This made it possible to provide the mathematical model ”accelerator - multiplier” as a system of two differential equations of the first order. The application of the developed model to the analysis of the dynamic properties of the macroeconomic system makes it possible to evaluate the parameters at which the ”multiplier-accelerator” system enters a critical state. It has been proven that the conditions for the occurrence of self-oscillations depend on the critical value of the accelerator power. The presence of a two-fold limit cycle with corresponding ”soft” and ”hard” modes of birth (death) of the limit cycle was also founded. The applied usefulness of the model is that the choice of management decisions taking into account these results allow us preventing the occurrence of bifurcations and disasters in the process of evolution of the macroeconomic systems.

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“…Equations in system (35) are independent. The second equation of the system describes the rotational motion with unit speed (frequency).…”

Section: Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Non-linear model of the macroeconomic system dynamics: multiplier-accelerator

Dorokhov,

Lebedeva,

Malyarets

et al. 2023

BUT_Series_III

View full text Add to dashboard Cite

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“…The importance of investment and innovation for economic growth has long been established. There is a consensus that investment is deemed necessary for economic growth, enabling both innovation and long-term economic growth (Mourao & Popescu, 2022;King & Levine, 1993). The role of foreign direct investment (FDI) on innovation and growth processes has also been demonstrated.…”

Section: Regional Innovation and The Role Of Spilloversmentioning

confidence: 99%

Innovation, Coopetition and Spillover Effects in European Regions

Popescu,

Reis Mourao,

Bilan

2023

Journal of Business Economics and Management

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Innovation and investment are critical to economic growth. In this article, we address the complex task of evaluating the capacity of regional innovation to increase investment and generate spillovers in regions of the European Union (EU) from both spatial and temporal perspectives. Using panel data estimation methods and exploring the effects of dynamic spatial autocorrelation, our findings show a positive spatial autocorrelation at the level of EU regions. We also observed spatial competition, both in terms of the distribution of investments and in terms of the diffusion of short-term innovation gains. We argue that, in the short term, EU regions tend to behave as competitors for investment fixing, but in the long run, innovation has the potential to generate spillover effects on neighbouring regions. Furthermore, we find that investment patterns were characterized by a significant temporal autocorrelation, showing that shocks to investment in regions tend to be absorbed in a few periods. This paper attempts to fill existing gaps by using estimation methods for dynamic spatial panel data to identify and explore the effects of regional innovation on investment for the 154 European Union regions, and reports original findings as regards the knowledge spillover across European regions.

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