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The Italian economic stagnation in a Kaldorian theoretical perspective

Author

Listed:
  • Guglielmo Forges Davanzati

    (University of Salento)

  • Rosario Patalano

    (University of Naples Federico II)

  • Guido Traficante

    (European University of Rome)

Abstract

This paper analyses the Italian economic stagnation in a Kaldorian framework. On the theoretical ground we propose an interpretation of the Italian economic stagnation based on the continuous reduction of aggregate demand and labour productivity. We also consider the role of the banking sector as a factor driving aggregate demand and, in turn, labour productivity. We estimate a VAR for the period 2002–2015 to analyse jointly the evolution of private consumption, real GDP, private investments, credit supply, labour compensation and productivity. Our main empirical finding is that aggregate demand and credit supply significantly affect the path of labour productivity, consistently with Kaldor–Verdoorn Law.

Suggested Citation

  • Guglielmo Forges Davanzati & Rosario Patalano & Guido Traficante, 2019. "The Italian economic stagnation in a Kaldorian theoretical perspective," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(3), pages 841-861, October.
    • Handle: RePEc:spr:epolit:v:36:y:2019:i:3:d:10.1007_s40888-017-0084-0
    DOI: 10.1007/s40888-017-0084-0
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    Cited by:

    1. Guglielmo Forges Davanzati, 2020. "The Italian Economic Decline and the Proposal of the State as Innovator of First Resort," Working Papers 0049, ASTRIL - Associazione Studi e Ricerche Interdisciplinari sul Lavoro.
    2. Matteo Deleidi & Claudia Fontanari & Santiago José Gahn, 2023. "Autonomous demand and technical change: exploring the Kaldor–Verdoorn law on a global level," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(1), pages 57-80, April.
    3. Guido Traficante & Guglielmo Forges Davanzati, 2018. "La restrizione del credito in uno schema di teoria monetaria della produzione: il caso italiano," Moneta e Credito, Economia civile, vol. 71(283), pages 211-233.
    4. Fabrizio Antenucci & Matteo Deleidi & Walter Paternesi Meloni, 2019. "Demand and Supply-side Drivers of Labour Productivity Growth: an empirical assessment for G7 countries," Working Papers 0042, ASTRIL - Associazione Studi e Ricerche Interdisciplinari sul Lavoro.
    5. Vítor Domingues Martinho & Maria Del Carmen Sánchez‐Carreira & Paulo Reis Mourão, 2021. "Transnational economic clusters: The case of the Iberian Peninsula," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(5), pages 1442-1459, October.

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    More about this item

    Keywords

    Kaldor; Italy; Aggregate demand; Labour productivity;
    All these keywords.

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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