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Metroeconomica
Article . 2022 . Peer-reviewed
License: CC BY
Data sources: Crossref
ResearchGate Data
Preprint . 2022
Data sources: Datacite
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When is the long run?—Historical time and adjustment periods in demand‐led growth models

Authors: Gallo E.;

When is the long run?—Historical time and adjustment periods in demand‐led growth models

Abstract

AbstractIn recent years, Post‐Keynesian analysis has been characterized by a renewed interest in long‐run theories of growth and distribution. While many authors have focused on the convergence of demand‐led growth models to a fully adjusted equilibrium, relatively little attention has been given to the time required to reach this long‐run position. In order to fill the gap, this paper seeks to answer the question of when is the long run in demand‐led growth models. By making use of numerical integration, it analyses the time of adjustment from one steady‐state to the other in two well‐known demand‐led growth models: the Sraffian Supermultiplier and the fully adjusted version of the neo‐Kaleckian model. The results show that the adjustment period is generally beyond an economically meaningful time span, suggesting that researchers and policy makers ought to pay more attention to the models' predictions during the traverse rather than focusing on steady‐state positions.

Country
Italy
Keywords

330, adjustment period; effective demand; growth, neo-Kaleckian model; Sraffian Supermultiplier; time; traverse, growth, adjustment period, Sraffian Supermultiplier, neo-Kaleckian model, adjustment period; effective demand; growth; neo-Kaleckian model; Sraffian Supermultiplier; time; traverse, time, effective demand, traverse

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
16
Top 10%
Top 10%
Top 10%
Green
hybrid