Studying Growth in the Modern Classical Approach
Theoretical and Empirical Implications for the Analysis of Potential Output
Bibliographic Data
| ID | 12229287 |
|---|---|
| Authors | Antonella Palumbo (0000-0002-4723-0212, Roma Tre University, corresponding author) |
| Year | 2015 |
| Volume | 27 |
| Issue | 3 |
| Pages | 282-307 |
| Publication date | 2015-07-03 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Review of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0953-8259 • E-ISSN: 1465-3982 |
| Publisher | Taylor & Francis (PUBLISHER • GB) |
| DOI | 10.1080/09538259.2015.1067366 |
| OpenAlex | W2179355712 |
| Language | EN |
| Citations received | 5 |
| References cited | 29 |
The main characteristics of the modern classical approach to growth are studied with particular reference to the notion of ‘potential output’. In contrast to mainstream approaches, which consider potential output to be exogenous and supply-determined, it is here regarded as endogenous and path-dependent. A tentative analysis is carried out of the implications of such a conception in empirical research, with special reference to the effects of the crisis on potential growth. Mainstream estimation methods (especially those used by international institutions) are shown to be deeply influenced by theory, but also to provide dubious and puzzling results. Very different empirical results and policy implications may be obtained from the standpoint of the alternative theoretical framework provided by the modern classical approach. On this basis, the paper proposes that the long-term policy target should be set in terms of the rate of unemployment rather than potential output or potential growth
Contrast (vision · Econometrics · Economics · Endogenous growth theory · Estimation · Macroeconomics · Mainstream · Mathematical economics · Monetary policy · Neoclassical economics · Potential output · Set (abstract data type · Unemployment · Computer Science · Economic Growth and Productivity · Economic Theory and Policy · Monetary Policy and Economic Impact
Economia internazionale
Unemployment
Postwar U.S. Business Cycles
Value and Distribution in the Classical Economists and Marx 1
The Role of Monetary Policy
Essays on Piero Sraffa
Paths of accumulation and growth
Capacity Utilisation in the Long Run
Accumulation, Capacity Utilisation and Distribution
The Theory of Value and the Foundations of Economic Policy
Long Period Effective Demand and the Sraffian Supermultiplier
Nobel Lecture
The Relation between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1862-1957
The Relation Between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861–1957 1
What Stopped the Inflation? Unemployment or Commodity Prices
The Time-Varying Nairu and its Implications for Economic Policy
| Citations per year | 0.56 |
|---|---|
| Citation span | 2017 - 2026 (10) |
| Highly cited | No |