Transformational Growth, Endogenous Demand, and a Developmental ELR Program

Edward J. Nell and George Argyrous

Chapter 6 in The Job Guarantee, 2013, pp 125-159 from Palgrave Macmillan

Abstract: Abstract Both neoclassical and post-Keynesian growth theory fails to explain the determinants of the growth of demand. Historically, the growth of demand has depended on the changing structure of social classes, which in turn is also a key to the growth of productivity. Understanding this makes it possible to develop a simple theory in which the growth of demand is endogenous, and interacts with capital intensity, productivity, and relative shares. By defining a distinction between “collective” goods and “personal” goods, this model can be extended further to include the growth of government. Moreover, the Employer of Last Resort (ELR), which has hitherto been considered a countercyclical policy, can now be extended to questions of development, in economies in which there is a shortage of capital. The paper closes with comments on the limitations of theories of endogenous demand growth.

Keywords: Productivity Growth; Real Wage; Government Spending; Capital Good; Government Service (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-29799-0_7

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137297990

DOI: 10.1057/9781137297990_7

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().