Similitudes and Discrepancies in Post‐Keynesian and Marxist Theories of Investment: A Theoretical and Empirical Investigation1

Lavoie, Marc; Rodríguez, Gabriel; Seccareccia, Mario

doi:10.1080/0269217042000186697

Cited by 83 publications

(82 citation statements)

References 25 publications

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“…In a series of articles, Lavoie (1995Lavoie ( , 1996, Lavoie et al (2004) and more recently Hein et al…”

Section: The Kaleckian Responsementioning

confidence: 99%

“…They conclude (on the same page) that "the normal rate of capacity utilization, in that context, is thus a convention [emphasis added], which may be influenced by historical experience or strategic considerations related to entry deterrence. Although firms may consider the normal rate of capacity utilization as a target, macroeconomic effective demand effects might hinder firms from achieving this target, unless the normal rate is itself a moving target influenced by its past values" (Lavoie et al, 2004).…”

Section: The Kaleckian Responsementioning

confidence: 99%

“…Lavoie et al (2004) filter the data with the Hodrick-Prescott (HP) filter and they argue that the fluctuations of the HP-filtered series prove that the desired rate adjusts as described in equation (5). They also provide an econometric justification for their claim using these data 10 .…”

Section: The Federal Reserve Data On Utilizationmentioning

confidence: 99%

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On the 'Utilization Controversy': A Theoretical and Empirical Discussion of the Kaleckian Model of Growth and Distribution

Nikiforos

2012

SSRN Journal

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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. The 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. Terms of use: Documents inLevy 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. Capital. We argue that the long-run dynamic adjustment proposed by Kaleckian scholars lacks a coherent economic rationale, and provide an alternative path toward the endogeneity of the desired utilization at the micro and macro levels. Finally, we examine the proposed adjustment mechanism econometrically. Our results verify the endogeneity of the normal utilization rate.

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“…In a series of articles, Lavoie (1995Lavoie ( , 1996, Lavoie et al (2004) and more recently Hein et al…”

Section: The Kaleckian Responsementioning

confidence: 99%

Section: The Kaleckian Responsementioning

confidence: 99%

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On the 'Utilization Controversy': A Theoretical and Empirical Discussion of the Kaleckian Model of Growth and Distribution

Nikiforos

2012

SSRN Journal

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“…Lavoie et al (2004) have argued that the desired rate can be determined endogenously, but in each case the long-run equilibrium is defined exogenously. Actual utilization deviates from desired by some rule that reduces desired utilization until it is consistent with the expected γ.…”

Section: Variable Investment Growthmentioning

confidence: 99%

The Structuralist Growth Model

Gibson¹

2010

Handbook of Alternative Theories of Economic Growth

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This paper examines the underlying theory of structuralist growth models in an effort to compare that framework with the standard approach of Solow and others. Both the standard and structuralist models are solved in a common mathematical framework that emphasizes their similarities. It is seen that while the standard model requires the growth rate of the labor force to be taken as exogenously determined, the structuralist growth model must take investment growth to be determined exogenously in the long run. It is further seen that in order for the structuralist model to reliably converge to steady growth, considerable attention must be given to how agents make investment decisions. In many ways the standard model relies less on agency than does the structuralist. While the former requires a small number of plausible assumptions for steady growth to emerge, the structuralist model faces formidable challenges, especially if investment growth is thought to be determined by the rate of capacity utilization.

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“…We will take liberty on occasion and loosely refer to the reaction function as the "Taylor Rule." 5 For a very clear presentation of recent debates about how to interpret this investment equation, consult Lavoie et al (2004).…”

Section: Elements Of the Modelsmentioning

confidence: 99%