Housing is NOT ONLY the Business Cycle: A Luxemburg-Kalecki External Market Empirical Investigation for the United States

Pérez-Montiel, Jose; Pariboni, Riccardo

doi:10.1080/09538259.2020.1859718

Cited by 20 publications

(5 citation statements)

References 88 publications

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“…Our results are in line with the results obtained by some studies on the fiscal multiplier for the case of Spain (De Castro, 2006; Marcellino, 2006; Martínez and Zubiri, 2014). Our results are also in line with Postkeynesian theoretical approaches that focus on the role played by the autonomous components of demand in driving output (Serrano, 1995; Dejuan, 2005; Girardi and Pariboni, 2016, 2020; Lavoie, 2016; Allain, 2021; Perez-Montiel and Erbina, 2020, 2021; Pérez-Montiel and Pariboni, 2021) [6].…”

Section: Discussionsupporting

confidence: 87%

Government public infrastructure investment and economic performance in Spain (1980–2016)

Pérez-Montiel

Manera

2021

AEA

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Purpose The authors estimate the multiplier effect of government public infrastructure investment in Spain. This paper aims to use annual data of the 17 Spanish autonomous communities for the 1980–2016 period. Design/methodology/approach The authors use dynamic acyclic graphs and the heterogeneous panel structural vector autoregressive (P-SVAR) method of Pedroni (2013). This method is robust to cross-sectional heterogeneity and dependence, which are present in the data. Findings The findings suggest that an increase in the level of government public infrastructure investment generates a positive and persistent effect on the level of output. Five years after the fiscal expansion, the multiplier effects of government public infrastructure investment reach values above one. This confirms that government public infrastructure investment expansions have Keynesian effects. The authors also find that the multiplier effects differ between autonomous communities with above-average and below-average GDP per capita. Originality/value To the best of the authors’ knowledge, no research uses dynamic acyclic graphs and heterogeneous P-SVAR techniques to estimate fiscal multipliers of government public investment in Spain by using subnational data.

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Section: Discussionsupporting

confidence: 87%

Government public infrastructure investment and economic performance in Spain (1980–2016)

Pérez-Montiel

Manera

2021

AEA

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“…33 We believe that the supermultiplier's theoretical framework, which emphasizes the role of autonomous debt-financed components of demand, enhances the monetary and debt nature of the capitalist economy (Pariboni 2016). This approach's Kaleckian root is evident in the coincidence of the autonomous components with the Luxemburg-Kalecki external markets (Cesaratto 2015;Pérez-Montiel and Pariboni 2021). All in all, we find a convergence of different streams of Post-Keynesian thought on a common monetary theory of demand-led growth to be feasible and fruitful.…”

Section: Discussionmentioning

confidence: 54%

The relation between Keynesian monetary theory and demand-led growth: a Sraffian exploration

2022

ROKE

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This article integrates the Sraffian approach to demand-led growth theory with insights from Keynes's concept of finance and from the monetary circuit approach. The paper's first contribution is the extension of Garegnani's interpretation of Keynes's General Theory's originality and limitations to Keynes's 1937-1938 papers on 'finance.' In both cases, it is a question of freeing Keynes from the ties of Marginalist theory. Second, the paper identifies a complementarity between the Keynesian concept of finance, some insights from the monetary circuit, and the role attributed by the Sraffian take of demandled growth to the autonomous components of demand, which are also Kalecki's external markets. Finally, the authors propose a subsidiary role for the liquidity-preference theory in the context of the determination of the structure of interest rates, given the short-term base rate set by monetary authorities.

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“…As argued especially but not exclusively by Post-Keynesian authors, in the face of the depressive effects of fiscal austerity and the observed trends in income distribution in most advanced economies, private debt-expenditures have acted as a counterbalancing, albeit deeply unstable, force. In a similar vein, residential investment, stimulated by the increase in real estate prices, has also constituted an important source of dynamism for aggregate demand (Kohler and Stockhammer, 2021;Pérez-Montiel and Pariboni, 2021), in the context of what has been defined a "privatized Keynesianism" model (Crouch, 2009), characterized by the role of property price bubbles and mortgage debt in inducing (autonomous) consumption. Obviously, these phenomena do not occur in a vacuum and respond to a complex intersection of institutional, cultural, and social norms-related factors.…”

Section: The Political Economy Of Autonomous Demandmentioning

confidence: 99%

Growth Theory and the Growth Model Perspective: Insights from the Supermultiplier

Morlin

Passos

Pariboni

2022

Review of Political Economy

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Recently, demand-led growth theories reshaped the study of comparative political economy. Since the Baccaro and Pontusson critique of Varieties of Capitalism, a new wave of studies has sought to analyze national economies in terms of their main demand driver of growth. Post-Keynesian authors provided extensions to perfect the fit between demand-led growth theories and comparative political economy. We argue that the Sraffian supermultiplier provides a growth theory compatible with the growth model perspective advanced by Baccaro and Pontusson and has advantages over Kaleckian and New Keynesian approaches. The concept of the autonomous components of demand, which comprise government spending, export, and debt-financed consumption, is already central for the studies of growth models. The supermultiplier provides a theory that coherently understands the relation between the autonomous demand drivers and the other induced components of demand. We demonstrate our arguments by decomposing the growth of four advanced economies: the United States, Germany, Japan, and Sweden. The decomposition shows the importance of separating the autonomous from the induced components and highlights the relevance of public expenditures and exports as growth drivers in advanced economies.

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Housing is NOT ONLY the Business Cycle: A Luxemburg-Kalecki External Market Empirical Investigation for the United States

Cited by 20 publications

References 88 publications

Government public infrastructure investment and economic performance in Spain (1980–2016)

Government public infrastructure investment and economic performance in Spain (1980–2016)

The relation between Keynesian monetary theory and demand-led growth: a Sraffian exploration

Growth Theory and the Growth Model Perspective: Insights from the Supermultiplier

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