Output determination and autonomous demand multipliers: An empirical investigation for the US economy

Autonomous demand and technical change: exploring the Kaldor–Verdoorn law on a global level

“…To overcome this issue, we use variables that can be theoretically associated with a demand shock. To do this, the vast literature on fiscal policy (see, among others, Auerbach & Gorodnichenko, 2012 ; Blanchard & Perotti, 2002 ; Deleidi et al, 2020a , 2021a , 2021c ), as well as the one on the supermultiplier (Barbieri Góes & Deleidi, 2022 ; Cesaratto et al, 2003 ; Freitas & Serrano, 2015 ; Serrano, 1995 ) allow us to define a demand shock. Specifically, in our models, demand shocks are identified employing the notion of autonomous demand ( ), government expenditure ( , and export ( ).…”

“…( 9 ), the identification employed in Model 3 is similar to the one used in Model 2. Following Barbieri Góes and Deleidi ( 2022 ), we assume that export ( ) is more exogenous than government expenditure ( ) within the contemporaneous relationship. However, to provide a clear picture, a robustness check is carried out by assuming an additional identification for Model 3 where government expenditure ( ) is considered more exogenous than export ( ) within the contemporaneous relationship.…”

“…3 These components are defined as autonomous and non-capacity creating since they neither depend on the current level of income nor directly affect productive capacity (Serrano, 1995 ). Specifically, government expenditure is determined by fiscal policy decisions; exports depend on the level of foreign demand; and autonomous consumption is financed through bank loans created through an endogenous money creation process or accumulated wealth (Barbieri Góes & Deleidi, 2022 ). 4 Following the supermultiplier model of growth, the relationship between the rate of growth of output ( ) and the autonomous components of demand ( ) can be written as in Eq.…”