Permanent Demand and Private Investment in the General theory: an empirical investigation
We empirically test some Keynes’ (and post Keynesians’) assertions relative to the multiplier-accelerator principle. By means of the nonlinear causality test proposed by Diks and Wolski (2016), we conclude that in the United States domestic private investment is driven by permanent demand. We expla...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Universidad de Huelva
2020-03-01
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| Series: | Revista de Economía Mundial |
| Subjects: | |
| Online Access: | https://www.uhu.es/publicaciones/ojs/index.php/REM/article/view/3835 |
| _version_ | 1827321842080153600 |
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| author | Jose A. Pérez Montiel Carles Manera Erbina |
| author_facet | Jose A. Pérez Montiel Carles Manera Erbina |
| author_sort | Jose A. Pérez Montiel |
| collection | DOAJ |
| description |
We empirically test some Keynes’ (and post Keynesians’) assertions relative to the multiplier-accelerator principle. By means of the nonlinear causality test proposed by Diks and Wolski (2016), we conclude that in the United States domestic private investment is driven by permanent demand. We explain that this result is consistent with Keynes’s principle of effective demand in the long run. We hope this paper helps consolidating the potential consensus among Keynesian, Kaleckian and Sraffian economists initiated by the work of Allain (2015).
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| first_indexed | 2024-04-25T01:15:14Z |
| format | Article |
| id | doaj.art-d57f9eb5b7af41f5b2d38f5d451142c4 |
| institution | Directory Open Access Journal |
| issn | 1576-0162 2340-4264 |
| language | English |
| last_indexed | 2024-04-25T01:15:14Z |
| publishDate | 2020-03-01 |
| publisher | Universidad de Huelva |
| record_format | Article |
| series | Revista de Economía Mundial |
| spelling | doaj.art-d57f9eb5b7af41f5b2d38f5d451142c42024-03-09T11:49:55ZengUniversidad de HuelvaRevista de Economía Mundial1576-01622340-42642020-03-015410.33776/rem.v0i54.3835Permanent Demand and Private Investment in the General theory: an empirical investigationJose A. Pérez MontielCarles Manera Erbina0Universidad Islas Baleares We empirically test some Keynes’ (and post Keynesians’) assertions relative to the multiplier-accelerator principle. By means of the nonlinear causality test proposed by Diks and Wolski (2016), we conclude that in the United States domestic private investment is driven by permanent demand. We explain that this result is consistent with Keynes’s principle of effective demand in the long run. We hope this paper helps consolidating the potential consensus among Keynesian, Kaleckian and Sraffian economists initiated by the work of Allain (2015). https://www.uhu.es/publicaciones/ojs/index.php/REM/article/view/3835Permanent demandSupermultiplierEconomic dynamics |
| spellingShingle | Jose A. Pérez Montiel Carles Manera Erbina Permanent Demand and Private Investment in the General theory: an empirical investigation Revista de Economía Mundial Permanent demand Supermultiplier Economic dynamics |
| title | Permanent Demand and Private Investment in the General theory: an empirical investigation |
| title_full | Permanent Demand and Private Investment in the General theory: an empirical investigation |
| title_fullStr | Permanent Demand and Private Investment in the General theory: an empirical investigation |
| title_full_unstemmed | Permanent Demand and Private Investment in the General theory: an empirical investigation |
| title_short | Permanent Demand and Private Investment in the General theory: an empirical investigation |
| title_sort | permanent demand and private investment in the general theory an empirical investigation |
| topic | Permanent demand Supermultiplier Economic dynamics |
| url | https://www.uhu.es/publicaciones/ojs/index.php/REM/article/view/3835 |
| work_keys_str_mv | AT joseaperezmontiel permanentdemandandprivateinvestmentinthegeneraltheoryanempiricalinvestigation AT carlesmaneraerbina permanentdemandandprivateinvestmentinthegeneraltheoryanempiricalinvestigation |