A Note on the Theory of Demand-Led Growth

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A Note on the Theory of Demand-Led Growth

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Nelson H. Barbosa-Filho (CEPA, New School University)

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Nelson Henrique Barbosa-Filho

Abstract

This paper presents a demand-led growth model where an exogenous investment function drives capital accumulation through a Bernoulli differential equation. In such framework investment generates savings through changes in capacity utilization and/or income distribution, making economic growth totally demand-led. Taking a Structuralist perspective, the model is purposefully made to be consistent with different Keynesian closures for the investment function, as well as with different assumptions about savings' adjustment to investment.

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Paper provided by Schwartz Center for Economic Policy Analysis (SCEPA), The New School in its series SCEPA Working Papers with number 1999-06.

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Length: 26 pages
Date of creation: Dec 1999
Date of revision:
Handle: RePEc:epa:cepawp:1999-06

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References listed on IDEAS
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.:

Robert J. Barro & Paul Romer, 1993. "Economic Growth," NBER Books, National Bureau of Economic Research, Inc, number barr93-1.
Other versions:
- Robert J. Barro & Paul M. Romer, 1991. "Economic Growth," NBER Books, National Bureau of Economic Research, Inc, number barr91-1.
Serrano, Franklin, 1995. "Long Period Effective Demand and the Sraffian Supermultiplier," Contributions to Political Economy, Oxford University Press, vol. 14(0), pages 67-90.

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Cited by:
(explanations, 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.)

Álvaro Martin Moreno Rivas, 2005. "Del filo de la navaja a la cáscara de nuez: un nuevo examen de la dinámica de Harrod," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 7(13), pages 101-132, July-Dece. [Downloadable!]
Nelson H. Barbosa Filho, 2004. "A Simple Model Of Demand-Led Growth And Income Distribution," Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32th Brazilian Economics Meeting] 038, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
óscar De-juan, 2005. "Paths of accumulation and growth: Towards a Keynesian long-period theory of output," Review of Political Economy, Taylor and Francis Journals, vol. 17(2), pages 231-252, April. [Downloadable!] (restricted)

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