The Effect of Ricardian Rent on Macroeconomic Performance

Manuel Montes

No 198903, UP School of Economics Discussion Papers from University of the Philippines School of Economics

Abstract: A macroeconomic, instead of microeconomic, analysis of the role of rent carried out in this study. In the sphere of production, a Ricardian process of rent generation, as formalized by Pasinetti, is utilized. Rent extraction induces supply-side declines. Attemps to overcome economic slowdown through Keynesian-type demand inducement brings the economy closer to its foreign exchange constraint.

Date: 1989-03
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Published as UPSE Discussion Paper No. 1989-03, March 1989

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