The paper investigates the determinants of private investment and economic growth from a theoretical perspective. We start with a critical analysis of the crowding-out effect and we present a new version of the Sraffian Supermultiplier: a model that accounts for both the multiplier and accelerator effects. We focus on different types of fiscal policies: generic ones and ‘mission-oriented’ ones that set a new direction for the economy. We show that mission-oriented policies have the potential to generate the largest positive effect on investments and output growth as well as on innovation processes and labour productivity growth.

Deleidi, M., & Mazzucato, M. (2019). Putting Austerity to Bed: Technical Progress, Aggregate Demand and the Supermultiplier. REVIEW OF POLITICAL ECONOMY, 31(3), 315-335 [10.1080/09538259.2019.1687146].

Putting Austerity to Bed: Technical Progress, Aggregate Demand and the Supermultiplier

Deleidi M.
;
2019

Abstract

The paper investigates the determinants of private investment and economic growth from a theoretical perspective. We start with a critical analysis of the crowding-out effect and we present a new version of the Sraffian Supermultiplier: a model that accounts for both the multiplier and accelerator effects. We focus on different types of fiscal policies: generic ones and ‘mission-oriented’ ones that set a new direction for the economy. We show that mission-oriented policies have the potential to generate the largest positive effect on investments and output growth as well as on innovation processes and labour productivity growth.
Deleidi, M., & Mazzucato, M. (2019). Putting Austerity to Bed: Technical Progress, Aggregate Demand and the Supermultiplier. REVIEW OF POLITICAL ECONOMY, 31(3), 315-335 [10.1080/09538259.2019.1687146].
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11590/360258
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