The aim of this paper is to study the relationship between reverse capital deepening and instability of the equilibrium between investments and savings. It is shown for a model with n commodities, infinitely many linear technique of production, and overlapping generations that a badly behaved real Wicksell effect, as in the case of a ‘reswitching of techniques’, can involve instability.
|Titolo:||REAL WICKSELL EFFECT, DEMAND FOR CAPITAL AND STABILITY|
|Data di pubblicazione:||2013|
|Citazione:||Fratini, S.M. (2013). REAL WICKSELL EFFECT, DEMAND FOR CAPITAL AND STABILITY. METROECONOMICA, 64(2), 346-360.|
|Appare nelle tipologie:||1.1 Articolo in rivista|