REPRODUCTION AND TEMPORARY DISEQUILIBRIUM: A CLASSICAL APPROACH
ABSTRACT We build a bisector reproduction model with Classical features in which the capitalists aim at maximizing accumulation. At variance with gravitation models, it is assumed that they invest their profits in their own industry. Their plans are based on actual productions and expected prices. E...
Gespeichert in:
Veröffentlicht in: | Metroeconomica 2012-11, Vol.63 (4), p.614-633 |
---|---|
Hauptverfasser: | , , , |
Format: | Artikel |
Sprache: | eng |
Schlagworte: | |
Online-Zugang: | Volltext |
Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
Zusammenfassung: | ABSTRACT
We build a bisector reproduction model with Classical features in which the capitalists aim at maximizing accumulation. At variance with gravitation models, it is assumed that they invest their profits in their own industry. Their plans are based on actual productions and expected prices. Effective prices and effective allocations of resources are determined by a market‐clearing mechanism. A law on the formation of expectations allows us to define the dynamics of disequilibria, which let appear endogenous self‐sustained fluctuations around a long‐run path. The long‐run rate of growth and the amplitude of the fluctuations depend on the initial conditions. |
---|---|
ISSN: | 0026-1386 1467-999X |
DOI: | 10.1111/j.1467-999X.2012.04157.x |