An evaluation of neo-Kaleckian supermultiplier and neo-Goodwinian models: Pseudo-goodwin cycles, external markets and pro-cyclical labour productivity

Arbeitspapier

This paper provides a theoretical and empirical evaluation of neo-Kaleckian supermultiplier and neo-Goodwinian models. The benchmark structuralist and Harrodian neo-Goodwinian models posit a macro economy with only one asset: the capital stock. Demand leakages presuppose that at least one sector is able to realise an excess of revenues over expenditures as a positive accumulation of net financial assets vis-à-vis other sectors. Models with a single real asset-and which assume each sector always has nil net lending/borrowing-provide pseudo explanations of real world economic activity. We show that neo-Kaleckian supermultiplier models with overhead labour can account for the induced nature of capacity investment, a pro-cyclical profit share and stylised net lending/borrowing patterns.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: FMM Working Paper ; No. 78

Classification and Topics

• Classification: Wirtschaft ; History of Economic Thought: Macroeconomics ; Current Heterodox Approaches: General ; General Aggregative Models: Marxian; Sraffian; Kaleckian ; Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy: General (includes Measurement and Data) ; Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) ; Economic Growth and Aggregate Productivity: General
• Subject: Pseudo-Goodwin cycles ; External markets ; Net lending/borrowing ; Overhead labour

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Fiebiger, Brett
• Event: Veröffentlichung
• (who): Hans-Böckler-Stiftung, Macroeconomic Policy Institute (IMK), Forum for Macroeconomics and Macroeconomic Policies (FMM)
• (where): Düsseldorf
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/270476
• Last update: 10.03.2025, 11:43 AM CET