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Divergent Growth and Endogenous Cycles: A Keynesian reconciliation of Harrod and Hicks


  • Steve Keen


The introduction of a General Theory perspective on investment into Hicks's trade cycle model generates a cyclical growth model which reconciles the apparently divergent visions of Harrod and Hicks. Growth occurs without the need to postulate autonomous investment, cycles occur without ceilings or floors, cycles and growth are interdependent, the rate of growth depends on the rate of investment, plausible values can be given to fundamental parameters, and differences in national growth rates can be explained by differences in national propensities to invest. Given that we're about to start discussing Neri's paper on endogenous growth theories, this may be of interest to some.

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  • Steve Keen, 1995. "Divergent Growth and Endogenous Cycles: A Keynesian reconciliation of Harrod and Hicks," Papers deposited by Authors _018, Post-Keynesian Archive.
  • Handle: RePEc:wop:pokear:_018

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    References listed on IDEAS

    1. Arnold, N. Scott, 1987. "Marx And Disequilibrium in Market Socialist Relations of Production," Economics and Philosophy, Cambridge University Press, vol. 3(01), pages 23-47, April.
    2. Pranab Bardhan & John E. Roemer, 1992. "Market Socialism: A Case for Rejuvenation," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 101-116, Summer.
    3. Paul Cockshott, "undated". "Calculation, Complexity and Planning: The Socialist Calculation Debate Once Again," Papers deposited by Authors _014, Post-Keynesian Archive.
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