The Sraffian supermultiplier as an alternative closure for heterodox growth theory*

Serrano, Franklin; Freitas, Fábio

doi:10.4337/ejeep.2017.01.06

Cited by 36 publications

(63 citation statements)

References 27 publications

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“…Private consumption is at the center of the analysis in Serrano and Freitas (, ), Cesaratto (), Pariboni () and Lavoie ().…”

Section: The Exogeneity Assumption and ‘The Long Run’mentioning

confidence: 99%

“…Autonomous demand, he argues, ‘overcomes the formal deficiencies of previous models’ (p. 178) and makes it possible to extend this hypothesis to the long run. Serrano and Freitas () suggest that the introduction of autonomous demand represents a ‘true heterodox alternative’ because it allows for a ‘reconciliation of demand‐led growth, exogenous distribution and a tendency to normal degree of capacity utilization’ (p. 17). Lavoie () repeatedly highlights the ability of the autonomous‐demand approach to safeguard the main Keynesian message and concludes that ‘the paradox of thrift or the paradox of costs can be preserved … by taking into account an autonomous growth component’ (p. 195).…”

Section: Labor Markets and The Supply Sidementioning

confidence: 99%

“… See among others, Serrano (), De‐Juán (), Serrano and Freitas (, ), Allain (, ), Cesaratto (), Dutt (), Girardi and Pariboni (), Pariboni (), and Lavoie (). Other contributions, including Hein (), explore the implications of autonomous demand in models without Harrodian instability.…”

mentioning

confidence: 99%

“… Following Serrano (), Serrano and Freitas’ (, ) short‐run investment function is given by

I = h Y

The proportional, contemporaneous relation between I and Y is unusual, and I know of no compelling reason—empirical or theoretical—for the exclusion of predetermined investment in the short run. Since they exclude lagged income effects on consumption, their model requires some source of autonomous demand to produce a positive short‐run level of output. There is no such requirement in the dynamic multiplier–accelerator model.…”

mentioning

confidence: 99%

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Autonomous demand, Harrodian instability and the supply side

Skøtt

2017

Metroeconomica

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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 e §ect 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 e §ects that resemble those derived in the literature on autonomous demand. JEL numbers: E11, E12, O41

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“…Private consumption is at the center of the analysis in Serrano and Freitas (, ), Cesaratto (), Pariboni () and Lavoie ().…”

Section: The Exogeneity Assumption and ‘The Long Run’mentioning

confidence: 99%

Section: Labor Markets and The Supply Sidementioning

confidence: 99%

mentioning

confidence: 99%

“… Following Serrano (), Serrano and Freitas’ (, ) short‐run investment function is given by

I = h Y

mentioning

confidence: 99%

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Autonomous demand, Harrodian instability and the supply side

Skøtt

2017

Metroeconomica

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“… See Serrano (), Bortis (), Cesaratto, Serrano, and Stirati (), Cesaratto (), Freitas and Serrano (), Serrano and Freitas ().…”

mentioning

confidence: 99%

Trend and business cycles with external markets: Non‐capacity generating semi‐autonomous expenditures and effective demand

Fiebiger¹,

Lavoie

2017

Metroeconomica

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The Global Financial Crisis has underlined the importance of developments in the household sector to explaining macro patterns. Some recent papers have discussed the role of non‐capacity generating semi‐autonomous expenditures in growth theory. This literature ties together several aspects of heterodox thought: growth and distribution; the Sraffian supermultiplier; Duesenberry's relative income hypothesis; the endogenous money approach and Kalecki–Luxemburg external markets. The basic message is that non‐wage sources of effective demand, based on mortgage and consumer credit, can play a key role in inducing capacity investment and driving long‐run output growth. This article gives a broad overview of the role of financed‐induced semi‐autonomous expenditures in growth, cycles and crises, and thus criticizes some of the previous approaches that claim to mimic actual cycles while abstracting from these crucial determinants of economic activity.

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Autonomous demand, multiple equilibria and unemployment dynamics

Ferri

Tramontana

2020

J Econ Interact Coord

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The paper presents a medium-run growth model driven by autonomous demand, where aggregate demand and supply interact and unemployment is present and plays different roles. In particular, it generates a feedback from supply to aggregate demand rooted in the presence of heterogeneous consumers and an uncertain environment. Two are the main consequences of this approach. The first is that multiple equilibria can be generated. The second is that equilibria may have different stability properties. In this perspective, growth becomes a dynamic process where initial conditions matter and history plays an important role.

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The Sraffian supermultiplier as an alternative closure for heterodox growth theory*

Cited by 36 publications

References 27 publications

Autonomous demand, Harrodian instability and the supply side

Autonomous demand, Harrodian instability and the supply side

Trend and business cycles with external markets: Non‐capacity generating semi‐autonomous expenditures and effective demand

Autonomous demand, multiple equilibria and unemployment dynamics

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