Autonomous Demand and Technical Change: Exploring the Kaldor-Verdoorn Law on a Global Level

Matteo Deleidi, Claudia Fontanari and Santiago Gahn

No PKWP2212, Working Papers from Post Keynesian Economics Society (PKES)

Abstract: This paper aims to explain labour productivity through the lens of a Kaldorian perspective. To assess the relationship between output, demand, capital accumulation, and labour productivity, we apply Panel Structural Vector Autoregressive (P-SVAR) modelling to a dataset of 52 countries observed over a long-time span as provided by the Penn World Table. Findings validate the Kaldorian perspective and show that demand shocks – measured by government expenditures and exports – produce positive and persistent effects on labour productivity. Findings are confirmed even when the full sample is broken down to consider developed and developing countries separately.

Keywords: Labour productivity; Autonomous demand; Panel SVAR; Penn World Table, Kaldor-Verdoorn (search for similar items in EconPapers)
JEL-codes: C33 E12 E24 O33 O47 (search for similar items in EconPapers)
Pages: 34
Date: 2022-04
New Economics Papers: this item is included in nep-eff, nep-mac and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Autonomous demand and technical change: exploring the Kaldor–Verdoorn law on a global level (2023)
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