As recent experience suggests, the most significant economic fluctuations are those that combine real and financial factors. This paper works out a simple mode lthat couples a version of Goodwin's (1967) growth cycle model of rea lfluctuations with insights drawn from a model of financial fluctuations based on Minsky's financial instability hypothesis (Vercelli, 2000; Sordi and Vercelli, 2006, 2012). The model suggested substantially modifies that of Keen(1995), who combined insights from Goodwin and Minsky within a model of fluctuating growth. In the real part of the model we introduce the possibility of disequilibrium in the goods market and formalize a mechanism of output adjustment based on the conventional dynamic multiplier. The model so obtained may exhibit persistent dynamics and provide insights to enable better understanding of the nature of real-world fluctuations.
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|Titolo:||Unemployment, income distribution and debt-financed investment in a growth cycle model|
|Citazione:||Sordi, S., & Vercelli, A. (2014). Unemployment, income distribution and debt-financed investment in a growth cycle model. JOURNAL OF ECONOMIC DYNAMICS & CONTROL, 48(11), 325-348.|
|Appare nelle tipologie:||1.1 Articolo in rivista|