THE PROFIT-INVESTMENT-UNEMPLOYMENT NEXUS AND CAPACITY UTILIZATION IN A STOCK-FLOW CONSISTENT MODEL

THE PROFIT-INVESTMENT-UNEMPLOYMENT NEXUS AND CAPACITY UTILIZATION IN A STOCK-FLOW CONSISTENT MODEL

ABSTRACT This paper studies under which conditions the share of profit in value‐added, financial constraints on investment and capital shortage may foster unemployment and may limit the growth of capital and/or the growth of aggregate demand, in a stock‐flow consistent model. The efficiency of deman...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
Veröffentlicht in:Metroeconomica 2010-07, Vol.61 (3), p.454-472
1. Verfasser: Chatelain, Jean-Bernard
Format: Artikel
Sprache:eng
Schlagworte:
Capital shortages
Capital theory
Credit rationing
Demand functions
Economic policy
Economic theory
Economics and Finance
Humanities and Social Sciences
Interest rates
Investments
Macroeconomics
Profit sharing
Studies
Supply & demand
Unemployment
Online-Zugang:Volltext
Tags: Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
Beschreibung
Zusammenfassung:ABSTRACT This paper studies under which conditions the share of profit in value‐added, financial constraints on investment and capital shortage may foster unemployment and may limit the growth of capital and/or the growth of aggregate demand, in a stock‐flow consistent model. The efficiency of demand‐side versus supply‐side economic policies (decrease of the real interest rate and/or of the real wage, increase of the leverage ceiling constraint) depends on capital shortage and credit rationing, which are not necessarily simultaneous due to the effects of investment on aggregate demand and supply.
ISSN:0026-1386
1467-999X
DOI:10.1111/j.1467-999X.2009.04074.x