The Profit-Investment-Unemployment nexus and Capacity Utilization in a Stock-Flow Consistent Model
AbstractThis paper studies under which conditions the share of profit in value-added, financial constraints on investment and capital shortage may foster unemployment and may limit the growth of capital and/or the growth of aggregate demand, in a stock-flow consistent model. The efficiency of demand-side versus supply-side economic policies (decrease of the real interest rate and/or of the real wage, increase of the leverage ceiling constraint) depends on capital shortage and credit rationing, which are not necessarily simultaneous due to the effects of investment on aggregate demand and supply.
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Bibliographic InfoPaper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number hal-00645155.
Date of creation: 2010
Date of revision:
Publication status: Published, Metroeconomica, 2010, 61, 3, 454-472
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Other versions of this item:
- Jean-Bernard Chatelain, 2010. "The Profit-Investment-Unemployment Nexus And Capacity Utilization In A Stock-Flow Consistent Model," Metroeconomica, Wiley Blackwell, vol. 61(3), pages 454-472, 07.
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