When is the long run?—Historical time and adjustment periods in demand‐led growth models

Ettore Gallo

Metroeconomica, 2022, vol. 73, issue 4, 1155-1178

Abstract: In recent years, Post‐Keynesian analysis has been characterized by a renewed interest in long‐run theories of growth and distribution. While many authors have focused on the convergence of demand‐led growth models to a fully adjusted equilibrium, relatively little attention has been given to the time required to reach this long‐run position. In order to fill the gap, this paper seeks to answer the question of when is the long run in demand‐led growth models. By making use of numerical integration, it analyses the time of adjustment from one steady‐state to the other in two well‐known demand‐led growth models: the Sraffian Supermultiplier and the fully adjusted version of the neo‐Kaleckian model. The results show that the adjustment period is generally beyond an economically meaningful time span, suggesting that researchers and policy makers ought to pay more attention to the models' predictions during the traverse rather than focusing on steady‐state positions.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/meca.12400

Related works:
Working Paper: When is the Long Run? – Historical Time and Adjustment Periods in Demand-led Growth Models (2022)
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:bla:metroe:v:73:y:2022:i:4:p:1155-1178

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0026-1386

Access Statistics for this article

Metroeconomica is currently edited by Heinz D. Kurz and Neri Salvadori

More articles in Metroeconomica from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().