Pasinetti, Keynes and the multiplier
This paper explores the relationship between the Keynesian multiplier and Pasinetti's model of pure production. Key assumptions of Pasinetti's model are its multisectoral structure, the definition of all income as a reward to labouring activities and, as a consequence, the operation of a pure labour theory of value. A translation between these models is effected by introducing investment as an exogenous determinant. By drawing from Keynes to apply his concept of the wage unit, it is possible to aggregate from Pasinetti's multisectoral model to a genuinely macroeconomic multiplier. This provides a way of using the scalar Keynesian multiplier without making the restrictive one-commodity assumption. In addition, this formal demonstration enhances our understanding of the relationship between the wage unit and the labour theory of value. Finally, critics have argued that Pasinetti downgrades the importance of institutional analysis; in contrast, the derivation of a scalar Keynesian multiplier contributes to an understanding of how relevant Pasinetti's approach is to the analysis of a monetary production economy.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 17 (2005)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/CRPE20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/CRPE20|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dudley Dillard, 1984. "Keynes and Marx: A Centennial Appraisal," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 6(3), pages 421-432, April.
When requesting a correction, please mention this item's handle: RePEc:taf:revpoe:v:17:y:2005:i:1:p:29-43. 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: (Michael McNulty)
If references are entirely missing, you can add them using this form.