Path Dependency and Macroeconomics by Philip Arestis, Malcolm Sawyer (eds.)

By Philip Arestis, Malcolm Sawyer (eds.)

Show description

Read or Download Path Dependency and Macroeconomics PDF

Best macroeconomics books

Studies in the Economics of Transportation

There are specific complexities linked to the commercial valuation of clever Transportation structures (ITS) and telematics. conventional equipment of quantitative research will not be applicable in adequately and reliably assessing the industrial affects of those applied sciences. even though complex transportation and similar applied sciences are being deliberate and deployed at an more and more speedy speed, a number of the applied sciences are nonetheless fairly new, and their use will not be common.

Principles of Financial Economics

This publication introduces graduate scholars in economics to the subfield of economic economics. It stresses the hyperlink among monetary economics and equilibrium concept, devoting much less awareness to simply monetary themes similar to valuation of derivatives. considering the fact that scholars frequently locate this hyperlink demanding to know, the remedy goals to make the relationship specific and transparent in each one degree of the exposition.

Additional info for Path Dependency and Macroeconomics

Sample text

This is an innocuous looking investment function, which reflects the Kaleckian arguments on the roles of profitability and capacity utilization (Sawyer, 1982, 2002). Besides not including relative prices, it also does not reflect any notion that firms know the future in the sense of holding rational expectations on the future, which are the basis of their decisions. It reflects the effects of current experience on the economy (through capacity utilization and profitability), with that current experience influencing perceptions of the future and that it is demand determined.

It is argued that hysteresis is a particular type of (rather than a synonym for) path dependency, and that the concept emerges from features of the adjustment dynamics of economic systems, rather than the nonuniqueness of equilibrium. Distinctions are made between stating (or asserting) hysteresis, characterizing hysteresis, and providing a model of hysteresis. Concrete examples of appeals to hysteresis in macrodynamic analysis are used to illustrate these distinctions. Finally, a case is made for retaining linear unit/zero root models of ‘hysteresis’ in macrodynamic analysis, as a useful first approximation and alternative to traditional equilibrium analysis.

1, pp. 1–17. Frydman, R. D. (2007), Imperfect Knowledge Economics: Exchange Rates and Risk, Princeton University Press. Jorgenson, D. (1963), ‘Capital Theory and Investment Behaviour’, American Economic Review, vol. 53, no. 2, pp. 247–59. Kaldor, Nicholas (1955–56). ‘Alternative Theories of Distribution’, Review of Economic Studies, 23(2), No. 61, 83–100. Kaldor, Nicholas (1972), ‘The irrelevance of equilibrium economics’, Economic Journal, 82, December, 1237–55, reprinted in F. P. Thirlwall (eds), The Essential Kaldor, London: Duckworth.

Download PDF sample

Rated 4.68 of 5 – based on 22 votes