From The Keynesian Revolution to the Klein-Goldberger Model: Klein and the Dynamization of Keynesian Theory
AbstractAccording to Klein, Keynes’s General Theory was crying out for empirical application. He set himself the task of implementing this extension. Our paper documents the different stages of his endeavor, focusing on his The Keynesian Revolution book, Journal of Political Economy article on aggregate demand theory, and his essay on the empirical foundations of Keynesian theory published in the Post-Keynesian Economics book edited by Kurihara. Klein’s claim is that his empirical model (the Klein-Goldberger model) vindicates Keynes’s theoretical insights, in particular the existence of involuntary unemployment. While praising Klein for having succeeded in making Keynesian theory empirical and dynamic, we argue that he paid a high price for this achievement. Klein and Goldberger’s model is less Keynesian than they claim. In particular, Klein’s claim that it validates the existence of involuntary unemployment does not stand up to close scrutiny.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2010019.
Date of creation: 31 Mar 2010
Date of revision:
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- De Vroey, Michel, 1997.
"IS-LM "à la Hicks" versus IS-LM "à la Modigliani","
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
1998003, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Michel, DE VROEY, 2005. "Involuntary Unemployment : the Elusive Quest for a Theory," Discussion Papers (ECON - DÃ©partement des Sciences Economiques) 2005004, Université catholique de Louvain, Département des Sciences Economiques.
- Michel DE VROEY, 2010. "Microfoundations: a decisive dividing line between Keynesian and new classical macroeconomics?," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2010030, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- De Vroey Michel & Duarte Pedro Garcia, 2013.
"In search of lost time: the neoclassical synthesis,"
The B.E. Journal of Macroeconomics,
De Gruyter, vol. 13(1), pages 1-31, January.
- Michel DE VROEY & Pedro GARCIA DUARTE, 2012. "In Search Of Lost Time: The Neoclassical Synthesis," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2012026, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Michel De Vroey & Pedro Garcia Duarte, 2012. "In Search of Lost Time: The Neoclassical Synthesis," Working Papers, Department of Economics 2012_07, University of São Paulo (FEA-USP).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anne DAVISTER-LOGIST).
If references are entirely missing, you can add them using this form.