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.
Fratini, S.M. (2013). REAL WICKSELL EFFECT, DEMAND FOR CAPITAL AND STABILITY. METROECONOMICA, 64(2), 346-360 [10.1111/meca.12010].
REAL WICKSELL EFFECT, DEMAND FOR CAPITAL AND STABILITY
FRATINI, SAVERIO MARIA
2013-01-01
Abstract
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.File in questo prodotto:
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