IDEAS home Printed from https://ideas.repec.org/p/swe/wpaper/2012-32.html
   My bibliography  Save this paper

The traverse, equilibrium analysis and post-Keynesian economics

Author

Listed:
  • Joseph Halevi

    (The University of Sydney)

  • Neil Hart

    (The University of Western Sydney)

  • Peter Kriesler

    () (The University of New South Wales)

Abstract

The Traverse refers to the movement of the economy outside equilibrium. It requires a consideration of how an economy may achieve equilibrium, and how it may navigate towards a new one if conditions change. Analysis of these themes, from the classical economists onwards, leads to the conclusion that it is difficult to envisage any useful role for equilibrium theory in the absence of some evidence that there are forces in the economy which propel it to equilibrium, without influencing the position to which the economy is gravitating towards. Complicating factors, emphasised in the post-Keynesian literature, include the existence of path-dependency, hysteresis, cumulative causation and the evolutionary nature of economic change.

Suggested Citation

  • Joseph Halevi & Neil Hart & Peter Kriesler, 2012. "The traverse, equilibrium analysis and post-Keynesian economics," Discussion Papers 2012-32, School of Economics, The University of New South Wales.
    • Handle: RePEc:swe:wpaper:2012-32
    as

    Download full text from publisher

    File URL: http://research.economics.unsw.edu.au/RePEc/papers/2012-32.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Franco Modigliani, 1959. "New Developments on the Oligopoly Front: Reply," Journal of Political Economy, University of Chicago Press, vol. 67, pages 418-418.
    2. Nicholas Kaldor, 1975. "What is Wrong with Economic Theory," The Quarterly Journal of Economics, Oxford University Press, vol. 89(3), pages 347-357.
    3. Kennedy, Charles & Thirlwall, A P, 1972. "Technical Progress: A Survey," Economic Journal, Royal Economic Society, vol. 82(325), pages 11-72, March.
    4. Peter Kriesler & J. W. Nevile, 2012. "Dynamic Keynesian economics: cycling forward with Harrod and Kalecki," Cambridge Journal of Economics, Oxford University Press, vol. 36(2), pages 405-417.
    5. Kaldor, Nicholas, 1970. "The Case for Regional Policies," Scottish Journal of Political Economy, Scottish Economic Society, vol. 17(3), pages 337-348, November.
    6. Rod Cross & Michael Grinfeld & Laura Piscitelli, 1999. "Hysteresis in Economic Systems," Computing in Economics and Finance 1999 723, Society for Computational Economics.
    7. Pasinetti,Luigi, 1993. "Structural Economic Dynamics," Cambridge Books, Cambridge University Press, number 9780521432825, June.
    8. K. N. Raj & A. K. Sen, 1961. "Alternative Patterns Of Growth Under Conditions Of Stagnant Export Earnings," Oxford Economic Papers, Oxford University Press, vol. 13(1), pages 43-52.
    9. Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. M. Centorrino & F. Ofria, 2008. "Organized crime and labour productivity in the Mezzogiorno: an application of the "Kaldor-Verdoorn" model," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 1, pages 163-188.
    2. Pier-Paolo Saviotti & Andreas Pyka¤ & Bogang Jun, 0. "Diversification, structural change, and economic development," Journal of Evolutionary Economics, Springer, vol. 0, pages 1-35.
    3. John A. Mathews, 2020. "Schumpeterian economic dynamics of greening: propagation of green eco-platforms," Journal of Evolutionary Economics, Springer, vol. 30(4), pages 929-948, September.
    4. Mark Setterfield, 2003. "Supply and Demand in the Theory of Long-run Growth: Introduction to a symposium on demand-led growth," Review of Political Economy, Taylor & Francis Journals, vol. 15(1), pages 23-32.
    5. Mario Cimoli & Nelson Correa, 2010. "ICT, Learning and Growth: An Evolutionary Perspective," Chapters, in: Mario Cimoli & André A. Hofman & Nanno Mulder (ed.), Innovation and Economic Development, chapter 7, Edward Elgar Publishing.
    6. Carton, Christine, 2008. "Crecimiento economico en America Latina: Evidencias desde una perspectiva Kaldoriana [Economic growth in Latin America: Evidence from a Kaldorian perspective]," MPRA Paper 8696, University Library of Munich, Germany.
    7. A. P. Thirlwall, 2013. "Commentary on Kaldor's 1970 Regional Growth Model," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(5), pages 492-494, November.
    8. Rodriguez-Clare, Andres, 1996. "The division of labor and economic development," Journal of Development Economics, Elsevier, vol. 49(1), pages 3-32, April.
    9. Miguel A. LeÛn-Ledesma & A. P. Thirlwall, 2002. "The endogeneity of the natural rate of growth," Cambridge Journal of Economics, Oxford University Press, vol. 26(4), pages 441-459, July.
    10. Elias Soukiazis & Micaela Antunes, 2013. "Growth Performance in Portugal since the 1960s: A Simultaneous Equation Approach with Cumulative Causation Characteristics," Journal of Economic Issues, Taylor & Francis Journals, vol. 47(1), pages 169-192.
    11. Gisela Di Meglio & Jorge Gallego & Andrés Maroto & Maria Savona, 2015. "Services in Developing Economies: A new chance for catching-up?," SPRU Working Paper Series 2015-32, SPRU - Science Policy Research Unit, University of Sussex Business School.
    12. John E. King, 2010. "Kaldor and the Kaldorians," Chapters, in: Mark Setterfield (ed.), Handbook of Alternative Theories of Economic Growth, chapter 7, Edward Elgar Publishing.
    13. Vitor João Pereira Martinho, 2004. "Endogenous productivity and scale economies. a verdoorn law application in the Portuguese regions," ERSA conference papers ersa04p9, European Regional Science Association.
    14. Caniëls, Marjolein C.J., 1996. "Regional differences in technology : theory and empirics," Research Memorandum 005, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    15. Giuseppe Fontana & Alfonso Palacio‐Vera, 2007. "Are Long‐Run Price Stability And Short‐Run Output Stabilization All That Monetary Policy Can Aim For?," Metroeconomica, Wiley Blackwell, vol. 58(2), pages 269-298, May.
    16. Christine Carton Madura, 2009. "Mecanismos kaldorianos del crecimiento regional: Aplicación empírica al caso del ALADI (1980-2007)," Economic Analysis Working Papers (2002-2010). Atlantic Review of Economics (2011-2016), Colexio de Economistas de A Coruña, Spain and Fundación Una Galicia Moderna, vol. 8, pages 1-24, May.
    17. A. P. Thirlwall, 2013. "Economic Growth in an Open Developing Economy," Books, Edward Elgar Publishing, number 15208.
    18. Pier-Paolo Saviotti & Andreas Pyka¤ & Bogang Jun, 2020. "Diversification, structural change, and economic development," Journal of Evolutionary Economics, Springer, vol. 30(5), pages 1301-1335, November.
    19. André Nassif & Carmem Feijó & Eliane Araujo, 2016. "What Determined Labour Productivity In The Brazilian Manufacturing Industries In The 2000s?," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 071, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    20. Jesus Felipe & John S.L. McCombie, 2013. "The Aggregate Production Function and the Measurement of Technical Change," Books, Edward Elgar Publishing, number 1975.

    More about this item

    Keywords

    history of economic thought; post-Keynesian; equilibrium and disequilibrium; path-dependency; hysteresis; cumulative causation and the evolutionary;
    All these keywords.

    JEL classification:

    • B00 - Schools of Economic Thought and Methodology - - General - - - History of Economic Thought, Methodology, and Heterodox Approaches
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:swe:wpaper:2012-32. 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: (Hongyi Li). General contact details of provider: http://edirc.repec.org/data/senswau.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.