Does investment call the tune? Empirical evidence and endogenous theories of the business cycle
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"Does investment call the tune? Empi..." refers background in this paper
...Keynes was explaining his theory this way “not because this is the only factor on which aggregate output depends, but because it is usual in a complex system to regard as the causa causans that factor which is most prone to sudden and wide fluctuation” (Keynes, 1937)....
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4,107 citations
"Does investment call the tune? Empi..." refers background in this paper
...The years between 1870 and the start of World War I saw major developments in economics, where the “cycle” displaced “crises” from economists’ minds and crises theories were displaced by business-cycle theories (Besomi, 2005; Schumpeter, 1954:1123)....
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...Marx’s analysis of the business cycle has been considered an unwritten chapter and “no coherent picture of it has emerged, or is likely to emerge, that would command the approval of all Marxologists” (Schumpeter, 1954:747)....
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1,118 citations
"Does investment call the tune? Empi..." refers background in this paper
...…also seem to hold underconsumptionist views, since they deemphasize the role of investment in business cycles by claiming that, with a “relatively weak response of investment to profitability (...), consumption necessarily assumes the dominant role in effective demand” (Bhaduri and Marglin, 1990)....
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...A different perspective is offered by those who from a variety of theoretical positions support the so-called profitsqueeze hypothesis (Boddy and Crotty, 1975; Boldrin and Horvath, 1995; Bhaduri and Marglin, 1990) in which high wages lead to recession through the demand side....
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