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A Simplified, 'Benchmark', Stock-Flow Consistent Post-Keynesian Growth Model

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  • Claudio H. Dos Santos
  • Gennaro Zezza

Abstract

Despite being arguably one of the most active areas of research in heterodox macroeconomics, the study of the dynamic properties of stock-flow consistent (SFC) growth models of financially sophisticated economies is still in its first steps. This paper attempts to offer a contribution to this line of research by presenting a simplified SFC Post-Keynesian growth model with well-defined dynamic properties and using it to shed light on the merits and limitations of the current heterodox SFC literature. Copyright © 2008 The Authors. Journal compilation © 2008 Blackwell Publishing Ltd.

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  • Claudio H. Dos Santos & Gennaro Zezza, 2008. "A Simplified, 'Benchmark', Stock-Flow Consistent Post-Keynesian Growth Model," Metroeconomica, Wiley Blackwell, vol. 59(3), pages 441-478, July.
  • Handle: RePEc:bla:metroe:v:59:y:2008:i:3:p:441-478
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    1. Dirk J. Bezemer, 2011. "Causes of Financial Instability: Don’t Forget Finance," Economics Working Paper Archive wp_665, Levy Economics Institute.
    2. Hiroshi Nishi, 2011. "Formalizing Debt-led and Debt-burdened Growth Regimes with Endogenous Macrodynamics of Minskian Financial Structure: A Long-run Analysis," Discussion papers e-10-016, Graduate School of Economics Project Center, Kyoto University.
    3. Passarella, Marco, 2012. "A simplified stock-flow consistent dynamic model of the systemic financial fragility in the ‘New Capitalism’," Journal of Economic Behavior & Organization, Elsevier, pages 570-582.
    4. Ryoo, Soon, 2010. "Long waves and short cycles in a model of endogenous financial fragility," Journal of Economic Behavior & Organization, Elsevier, pages 163-186.
    5. Peter G. Fennell & David J. P. O’Sullivan & Antoine Godin & Stephen Kinsella, 2016. "Is It Possible to Visualise Any Stock Flow Consistent Model as a Directed Acyclic Graph?," Computational Economics, Springer;Society for Computational Economics, vol. 48(2), pages 307-316, August.
    6. Peter Skott, 2012. "Theoretical And Empirical Shortcomings Of The Kaleckian Investment Function," Metroeconomica, Wiley Blackwell, vol. 63(1), pages 109-138, February.
    7. Marco, Passarella, 2011. "Systemic financial fragility and the monetary circuit: a stock-flow consistent approach," MPRA Paper 28498, University Library of Munich, Germany.
    8. Greg Hannsgen, 2012. "Fiscal Policy, Unemployment Insurance, and Financial Crises in a Model of Growth and Distribution," Economics Working Paper Archive wp_723, Levy Economics Institute.
    9. Passarella, Marco, 2011. "From the village fair to Wall Street. The Italian reception of Minsky’s economic thought," MPRA Paper 49593, University Library of Munich, Germany.
    10. Donald Katzner & Peter Skott, 2001. "Economic explanation, ordinality and the adequacy of analytic specification," Journal of Economic Methodology, Taylor & Francis Journals, vol. 11(4), pages 437-453.
    11. Peter Skott, 2008. "Growth, instability and cycles: Harrodian and Kaleckian models of accumulation and income distribution," UMASS Amherst Economics Working Papers 2008-12, University of Massachusetts Amherst, Department of Economics.
    12. Fabrício Pitombo Leite, 2015. "Taking Godley's Ratios Seriously," Metroeconomica, Wiley Blackwell, vol. 66(3), pages 508-533, July.
    13. Passarella, Marco, 2012. "A simplified stock-flow consistent dynamic model of the systemic financial fragility in the ‘New Capitalism’," Journal of Economic Behavior & Organization, Elsevier, pages 570-582.
    14. Peter Skott, 2010. "Growth, Instability and Cycles: Harrodian and Kaleckian Models of Accumulation and Income Distribution," Chapters,in: Handbook of Alternative Theories of Economic Growth, chapter 5 Edward Elgar Publishing.
    15. Franke, Rainer & Yanovski, Boyan, 2015. "On the long-run equilibrium value of Tobin's average Q," FinMaP-Working Papers 49, Collaborative EU Project FinMaP - Financial Distortions and Macroeconomic Performance: Expectations, Constraints and Interaction of Agents.
    16. Passarella, Marco, 2011. "The two-price model revisited. A Minskian-Kaleckian reading of the process of 'financialization'," MPRA Paper 32033, University Library of Munich, Germany.
    17. Mulligan, Robert F., 2013. "A sectoral analysis of the financial instability hypothesis," The Quarterly Review of Economics and Finance, Elsevier, pages 450-459.
    18. Peter Skott, Ben Zipperer, 2010. "An empirical evaluation of three post Keynesian models," UMASS Amherst Economics Working Papers 2010-08, University of Massachusetts Amherst, Department of Economics.
    19. Antoine Godin, 2015. "Special issue: Post-Keynesian stock-flow consistent modelling: Editorial to the special issue," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, pages 29-31.
    20. Peter Skott & Ben Zipperer, 2012. "An empirical evaluation of three post-Keynesian models," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, pages 277-307.
    21. Greg Hannsgen, 2014. "Fiscal Policy, Chartal Money, Mark-up Dynamics and Unemployment Insurance in a Model of Growth and Distribution," Metroeconomica, Wiley Blackwell, pages 487-523.

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