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The Supermultiplier as a Vertically Hyper-integrated Sector

Author

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  • Dejuán, Óscar

    (University of Castilla – La Mancha)

Abstract

This paper tries to shed new light on demand-led growth from a disaggregated multiplier-accelerator model (the supermultiplier, so to speak). This mechanism was presented as an answer to Harrod’s instability puzzles (Serrano, 1995; Bortis, 1997, Dejuán, 2005). The solution, however, was greeted with suspicion even among Sraffian and postKeynesian economists (Palumbo & Trezzini, 2003; Lavoie, 2010; Smith, 2013). A multisectoral setting of the supermultiplier model, as a variant of Pasinetti’s vertically hyper-integrated sectors, may help to understand its meaning and the mechanisms through which it shapes the structure of the economy until the warranted rate of growth matches the autonomous trend. It also clarifies the limits of the autonomous trend and the conditions for stability in the lines opened by White (2009) and Allain (2013).

Suggested Citation

  • Dejuán, Óscar, 2014. "The Supermultiplier as a Vertically Hyper-integrated Sector," Centro Sraffa Working Papers CSWP4, Centro di Ricerche e Documentazione "Piero Sraffa".
    • Handle: RePEc:ris:sraffa:0004
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    References listed on IDEAS

    as
    1. Fabio N. P. Freitas & Esther Dweck, 2013. "The Pattern of Economic Growth of the Brazilian Economy 1970–2005: A Demand-Led Growth Perspective," Palgrave Macmillan Books, in: Enrico Sergio Levrero & Antonella Palumbo & Antonella Stirati (ed.), Sraffa and the Reconstruction of Economic Theory: Volume Two, chapter 7, pages 158-191, Palgrave Macmillan.
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    5. Olivier Allain, 2013. "Tackling the instability of growth: A Kaleckian model with autonomous demand expenditures," Post-Print halshs-00821080, HAL.
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    8. J. v. Neumann, 1945. "A Model of General Economic Equilibrium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 13(1), pages 1-9.
    9. Pasinetti, Luigi L, 1988. "Growing Subsystems, Vertically Hyper-integrated Sectors and the Labour Theory of Value," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 12(1), pages 125-134, March.
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    More about this item

    Keywords

    Demand-led growth; multiplier-accelerator models; postKeynesianism;
    All these keywords.

    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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