Why the Keynesian Multiplier Increases During Hard Times: A Theoretical Explanation Based on Rentiers' Saving Behaviour
Thomas Dallery
- Fonction : Auteur
- PersonId : 21606
- IdHAL : thomas-dallery
- ORCID : 0000-0003-2218-3795
- IdRef : 150081901
Jonathan Marie
- Fonction : Auteur
- PersonId : 179749
- IdHAL : jonathan-marie
- ORCID : 0009-0000-1105-8177
Résumé
This article analyses the Keynesian multiplier from a new perspective. Recent empirical studies emphasize that the multiplier is endogenous to the level of economic activity, increasing during recessions and declining in expansions. Here, we propose a plausible explanation for this established fact based on the procyclicality of capitalists' propensity to save. Then, using a standard Kaleckian model of growth and distribution, we perform some simple simulations showing that fiscal multipliers increase during turbulent times. Consequently, this argues against cutting public spending for economies in recession.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Why the Keynesian Multiplier Increases During Hard Times: A Theoretical Explanation Based on Rentiers' Saving Behaviour
|
Résumé |
en
This article analyses the Keynesian multiplier from a new perspective. Recent empirical studies emphasize that the multiplier is endogenous to the level of economic activity, increasing during recessions and declining in expansions. Here, we propose a plausible explanation for this established fact based on the procyclicality of capitalists' propensity to save. Then, using a standard Kaleckian model of growth and distribution, we perform some simple simulations showing that fiscal multipliers increase during turbulent times. Consequently, this argues against cutting public spending for economies in recession.
|
Auteur(s) |
Sébastien Charles
1
, Thomas Dallery
2
, Jonathan Marie
3
1
LED -
Laboratoire d'Economie Dionysien
( 173249 )
- Université Paris 8 Vincennes-Saint-Denis - 2 rue de la Liberté - 93526 Saint-Denis cedex
- France
2
CLERSÉ -
Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019
( 1188 )
- Université de Lille - Sciences et technologies -
Bâtiment SH2 -
59655 Villeneuve d’Ascq Cedex -
- France
3
CEPN -
Centre d'Economie de l'Université Paris Nord
( 147976 )
- UFR de Sciences Economiques, Université Paris 13, 99 avenue Jean-Baptiste Clément, F-93430, Villetaneuse.
- France
|
Langue du document |
Anglais
|
Nom de la revue |
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Internationale
|
Date de publication |
2015
|
Volume |
66
|
Numéro |
3
|
Page/Identifiant |
451-473
|
Domaine(s) |
|
DOI | 10.1111/meca.12075 |
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