Scholarlink

<p>This paper investigates the existence of endogenous fluctuations within the Sraffian supermultiplier model (SSM) by introducing a theoretical extension that differentiates between business and residential investment. By focusing on residential investment as a semi-autonomous component, we demonstrate how it plays a pivotal role in economic cycles, influencing capacity utilization and business investment. Our findings reveal that the SSM can exhibit oscillatory behavior when investment is split into business and residential categories, challenging the prevailing view that cycles in the SSM are driven solely by exogenous shocks or ad hoc non-linearities in the investment reaction function. This approach not only extends the SSM’s stability properties but also underscores its compatibility with short-run theories of economic cycles.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Stability and cycles in a Sraffian supermultiplier model with business and residential investment

  • 期刊论文

  • 发表日期：

    2025年8月11日

查看全文
  • Ricardo Azevedo Araujo,
  • Helmar Nunes Moreira

摘要

This paper investigates the existence of endogenous fluctuations within the Sraffian supermultiplier model (SSM) by introducing a theoretical extension that differentiates between business and residential investment. By focusing on residential investment as a semi-autonomous component, we demonstrate how it plays a pivotal role in economic cycles, influencing capacity utilization and business investment. Our findings reveal that the SSM can exhibit oscillatory behavior when investment is split into business and residential categories, challenging the prevailing view that cycles in the SSM are driven solely by exogenous shocks or ad hoc non-linearities in the investment reaction function. This approach not only extends the SSM’s stability properties but also underscores its compatibility with short-run theories of economic cycles.