An Economic Business Cycles Model with Credit Constraints: The Case of Greece
A multiplier/accelerator macroeconomic model incorporating the permanent income hypothesis in private consumption, financial constraints in private investment, and a government that attempts fiscal expansions with tight money, is examined. Stability conditions show that government actions could be destabilizing if consumption patterns are closer to the Keynesian archetype than to the permanent income hypothesis. Simulation exercises show that during the period 1973-90 Greece was closer to the PIH with high marginal propensity to consume and low coefficient of acceleration with respect to aggregate private investment activities.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 49 (1996)
Issue (Month): 4 ()
|Contact details of provider:|| Postal: Via Garibaldi 4, 16124 Genova, Italy|
Phone: +39 010 27041
Fax: +39 010 2704222
Web page: http://www.iei1946.it/it/index.php
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ris:ecoint:0353. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Angela Procopio)
If references are entirely missing, you can add them using this form.