A Hicksian multiplier-accelerator model with floor determined by capital stock
2005 (English)In: Journal of Economic Behavior and Organization, ISSN 0167-2681, Vol. 56, no 3, 331-348 p.Article in journal (Refereed) Published
This article reconsiders the Hicksian multiplier-accelerator model with the “floor” related to the depreciation on actual capital stock. Through the introduction of the capital variable, a growth trend is created endogenously by the model itself, along with growth rate oscillations around it. The “ceiling” can be dispensed with altogether. As everything is growing in such a model, a variable transformation is introduced to focus relative dynamics of the income growth rate and the actual capital output ratio.
Place, publisher, year, edition, pages
2005. Vol. 56, no 3, 331-348 p.
Hicksian multiplier-accelerator model, Floor, Capital stock
IdentifiersURN: urn:nbn:se:umu:diva-13790DOI: 10.1016/j.jebo.2003.10.008OAI: oai:DiVA.org:umu-13790DiVA: diva2:153461