Development Blocks, Faulty Investment and Structural Tensions – The Åkerman- Dahmén Theory of the Business Cycle
Johan Åkerman and Erik Dahmén’s structural theory of economic fluctuations is a constructive alternative to traditional macroeconomic approaches and also to modern business-cycle models based on micro economic concepts. There are similarities between Åkerman and Dahmén’s theory and Schumpeter’s theory in Business Cycles. Both theories underline the importance of progressive industries for the recovery or prosperity phase. However, by the notions of faulty investment, structural tensions and development blocks, Åkerman and Dahmén provided an original explanation of the turning points in the business cycle. An empirical study of the severely overheated Swedish economy in the 1980s and the following depression did not confirm the Åkerman-Dahmén theory. One weakness of the theory is that it downplays the independent role of financial-market conditions. Åkerman and Dahmén’s theory is more valid for innovation-driven cycles such as the ICT boom in the late 1990s and the subsequent crisis.
|Date of creation:||11 Mar 2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +46 8 16 20 00
Fax: +46 8 16 14 25
Web page: http://www.ne.su.se/
More information through EDIRC
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.:
- J Malley & V A Muscatelli., .
"Business Cycles and Productivity Growth: Are Temporary Downturns Productive or Wasteful?,"
9605, Business School - Economics, University of Glasgow.
- Malley, Jim & Muscatelli, V. Anton, 1999. "Business cycles and productivity growth: Are temporary downturns productive or wasteful?," Research in Economics, Elsevier, vol. 53(4), pages 337-364, December.
- Erixon, Lennart, 2003.
"Combining Keynes and Schumpeter. Ingvar Svennilson's Contribution to the Swedish Growth School and Modern Economics,"
Research Papers in Economics
2003:8, Stockholm University, Department of Economics.
- Lennart Erixon, 2005. "Combining Keynes and Schumpeter. Ingvar Svennilson’s contribution to the Swedish growth school and modern economics," Journal of Evolutionary Economics, Springer, vol. 15(2), pages 187-210, January.
- Lennart Erixon, 2007. "Even the bad times are good: a behavioural theory of transformation pressure," Cambridge Journal of Economics, Oxford University Press, vol. 31(3), pages 327-348, May.
When requesting a correction, please mention this item's handle: RePEc:hhs:sunrpe:2009_0009. 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: (Sten Nyberg)
If references are entirely missing, you can add them using this form.