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Macroeconomics Of Induced Investment And The Theories Of Economic Cycles And Crises In Keynes-Minsky: A Cointegration Analysis Applied To The Brazilian Economy For 1990 To 2019

Author

Listed:
  • André Cutrim Carvalho

    (Universidade Federal do Pará (UFPA))

  • David Ferreira Carvalho

    (Universidade Federal do Pará (UFPA))

  • Irvyem Gabriel Santos Monteiro

    (Universidade Federal do Pará (UFPA))

Abstract

The main objective of this article is to discuss and estimate the relationship between Induced Investment (II) and the Gross Domestic Product (GDP) cycle of the Brazilian economy, based on the theoretical foundations of John Maynard Keynes and Hyman Philip Minsky. In addition, the methodology for carrying out the econometric modeling involves the use of unit root and cointegration tests of the Induced Investment and GDP series in Brazil between 1990 and 2019. The results of the econometric models confirm Keynes-Minsky’s economic foundations on business cycles. Therefore, it is up to economic agents, especially the government and the business sector, to observe the best method of employing them, in order to guarantee a more effective recovery of the economy, not only focusing on growth speed, but in medium and long term stabilization in order to avoid new outbreaks of crisis in the short term.

Suggested Citation

  • André Cutrim Carvalho & David Ferreira Carvalho & Irvyem Gabriel Santos Monteiro, 2023. "Macroeconomics Of Induced Investment And The Theories Of Economic Cycles And Crises In Keynes-Minsky: A Cointegration Analysis Applied To The Brazilian Economy For 1990 To 2019," Revista de Economia Mackenzie (REM), Mackenzie Presbyterian University, Social and Applied Sciences Center, vol. 20(2), pages 143-166, july-dece.
    • Handle: RePEc:aft:journl:v:20:2:2023:jul:dec:p:143-166
    DOI: 10.5935/1808-2785/rem.v20n2p.143-166
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    More about this item

    Keywords

    Gross Domestic Product (GDP) cycle; Brazil’s economy; Induced Investment (II); econometric modeling; unit and cointegration roots.;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General

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