Neoclassical stability and Keynesian instability: A two‐sector disequilibrium approach
Neoclassical stability and Keynesian instability: A two‐sector disequilibrium approach
复制标题
新古典稳定性和凯恩斯主义不稳定:两部门不平衡方法
DOI:
10.1111/meca.12372
复制
发表时间:
2021
期刊:
影响因子:
1.3
通讯作者:
Shogo Ogawa
中科院分区:
文献类型:
--
作者:
Shogo Ogawa
In this study, we construct a simple disequilibrium growth model to explore the dynamic property of effective demand. This study’s main concern is the effect of the quantity constraint: How do the quantities of consumption and investment goods demand and the productive capacity affect capital accumulation? To answer this, we build a two‐sector growth model with quantity constraints. Our model has multiple steady states in classical (supply‐led) regime and Keynesian (demand‐led) regime. The former is locally stable, but the latter is unstable. The instability of Keynesian steady state is amplified by the multiplier effect and shows how deep depression occurs.