Kaleckian vs. Marxian specifications of the investment function: Some empirical evidence for the US
Following Lavoie et al. (2004), this paper empirically assesses four investment functions closing the Kaleckian baseline model in the long-run: (a) the Naive-Kaleckian specification without any long-run adjustment; (b) the Intermediate-Kaleckian specification with an endogenous adjustment of the normal utilization rate; (c) the Hysteresis-Kaleckian specification with an additional endogenous adjustment of autonomous investment; and (d) the French-Marxian specification with an exogenous normal utilization rate and endogenous autonomous investment. Confronting these specifications with data of the US manufacturing sector, we compare them with respect to the plausibility of the parameter estimates, the goodness of fit, the parameter stability, the out-of-sample performances and relative encompassing. We find the Intermediate-Kaleckian specification to be superior. For the Hysteresis-Kaleckian specification, we get implausible results which contradict Lavoie et al. (2004). Yet, their estimates seem to be biased due to endogeneity issues.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
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.:
- Anwar Shaikh, 2009. "Economic Policy In A Growth Context: A Classical Synthesis Of Keynes And Harrod," Metroeconomica, Wiley Blackwell, vol. 60(3), pages 455-494, 07.
- 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.
- 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.
- Peter Skott & Soon Ryoo, 2007.
"Macroeconomic implications of financialization,"
UMASS Amherst Economics Working Papers
2007-08, University of Massachusetts Amherst, Department of Economics.
- Eckhard Hein & Marc Lavoie & Till van Treeck, 2012. "Harrodian Instability And The ‘Normal Rate’ Of Capacity Utilization In Kaleckian Models Of Distribution And Growth—A Survey," Metroeconomica, Wiley Blackwell, vol. 63(1), pages 139-169, 02.
- Marc Lavoie & Gabriel Rodriguez & Mario Seccareccia, 2004. "Similitudes and Discrepancies in Post-Keynesian and Marxist Theories of Investment: A Theoretical and Empirical Investigation," International Review of Applied Economics, Taylor & Francis Journals, vol. 18(2), pages 127-149.
- Russell Davidson & James G. MacKinnon, 1980.
"Several Tests for Model Specification in the Presence of Alternative Hypotheses,"
378, Queen's University, Department of Economics.
- Davidson, Russell & MacKinnon, James G, 1981. "Several Tests for Model Specification in the Presence of Alternative Hypotheses," Econometrica, Econometric Society, vol. 49(3), pages 781-93, May.
- Dumenil, Gerard & Levy, Dominique, 1999. "Being Keynesian in the Short Term and Classical in the Long Term: The Traverse to Classical Long-Term Equilibrium," Manchester School, University of Manchester, vol. 67(6), pages 684-716, December.
- Eckhard Hein & Marc Lavoie & Till van Treeck, 2011.
"Some instability puzzles in Kaleckian models of growth and distribution: a critical survey,"
Cambridge Journal of Economics,
Oxford University Press, vol. 35(3), pages 587-612.
- Eckhard Hein & Marc Lavoie & Till van Treeck, 2008. "Some instability puzzles in Kaleckian models of growth and distribution: A critical survey," IMK Working Paper 19-2008, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:29584. 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: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.